The Taliban promptly took responsibility for the attack, and a spokesman for the insurgents said the bombing allegedly killed 15 soldiers a claim that appeared exaggerated as many similar Taliban claims have been in the past.
Lt Damien E. Horvath, a military spokesman, could not immediately say how many casualties there were, or provide their nationalities.
The NATO mission, known as Resolute Support, "can confirm that a NATO convoy was attacked in Kandahar. The attack did cause casualties," he said.
Kandahar province was the Taliban spiritual heartland and the headquarters of their leadership during the five-year rule of the Taliban, which ended with the US invasion in 2001.
Eyewitness Ghulam Ali, who runs a mechanics shop near the attack site on the outskirts of the city of Kandahar, said the intensity of the blast knocked him out.
Shah Agha Popal, who runs a vehicle parts shop also nearby, said he also saw soldiers being taken away by two helicopters.
"But I couldn't tell if they were wounded or if they were dead," he said.
The combined US and NATO troop contingent currently in Afghanistan is about 13,500. The Trump administration is deciding whether to send about 4,000 or more US soldiers to Afghanistan in an attempt to stem Taliban gains.
Another 66 worshippers were injured in the horrific suicide assault Tuesday evening. As worshippers began their evening prayers a suicide attacker sprayed bullets at the private guards protecting the mosque before entering inside and detonating his explosives.
The Islamic State group claimed responsibility for the mosque bombing saying it was carried out by two of its fighters. IS said in a statement that the two men, whom it identified as Amir Qassim and Tayeb al-Kharasani, also used automatic rifles in the Shiite mosque before they detonated themselves.
Witnesses said demonstrators brought 31 bodies near the provincial governor's residence in a large freezer truck. Protesters demanded the people behind the brutal assault be arrested.
On Monday, after taking credit for an attack on the Iraq Embassy in the heart of the Afghan capital Kabul, the Islamic State group affiliate in Afghanistan warned it would strike Shiites. The Sunni militant group considers Shiite Muslims as apostates.
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