The blast occurred in a west Kabul neighbourhood that is mainly inhabited by members of the ethnic Hazara community, who are mostly Shia Muslims.
But the militant group's opponents have warned that the move can invite US sanctions on a country that's already reeling under an economic crisis.
Iraqi officials said that twelve civilians have been killed and five wounded in an explosion on a bus at the main checkpoint for the northern entrance to Karbala.
The accident occurred at a major shrine where Shia pilgrims were marking the holy day of Ashura. Officials say another 100 people are injured.
Shia Muslims observe the 9th and 10th of Muharram, the first month of the Lunar calendar, as special days of mourning over the killing of Imam Hussein, the grandson of Prophet Muhammad, during the battle of Karbala, Iraq in the seventh century.
No-one has claimed responsibility for the Kabul attack that wounded 40 others, and the Taliban has denied they had anything to do with it.
Members of Afghanistan's minority Shia community are questioning the state's security arrangements after Daesh-claimed attacks killed dozens in the country during Ashura.
A bombing in the northern city of Balkh marks the second time in 24 hours that Shia Muslims were targeted in the country.
An attack on Shiite worshipers at a prominent shrine was carried out by at least two gunmen on the Islamic holy day of Ashura.
Ashura is a day of remembrance Muslims around the world commemorate with various traditions, ceremonies and dishes.
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