ISIS fired a shell which contained the chemical agent into a military base in North Iraq, US military sources told CNN.
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The shell was categorized by officials as either a rocket or artillery shell.
No US troops were hurt or have displayed symptoms of exposure to mustard agent.
A USA defense official said troops had gone out to look at the ordnance after it landed. A second official called it “ineffective”.
Two field tests were conducted after the troops saw what they thought was a suspect substance.
The first chemical test came back positive for mustard gas, the official revealed.
Abu Iman al-Iraqi, a top jihadi leader and spokesman of the Islamic State (ISIS) in Iraq’s northwestern Nineveh Governorate, has reportedly deserted the group’s ranks on Tuesday.
“Iraqi troops are continuing the liberation battles of the western areas, backed by the worldwide coalition aviation launched an airstrike targeting ISIS members near Haditha west of Anbar, killing dozens of ISIS members”, Captain Shahwan al-Ghariri said.
The U.S. -led coalition is training several thousand Sunni tribal fighters with the aim of liberating Mosul, the largest Iraqi city still under ISIS control, The Daily Mail reported.
In its campaign of air strikes against ISIS, the U.S. has hit several locations believed to be production sites for mustard agent.
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U.S. military officials revealed the attack is beleived to have used mustard gas.
