"The presidency of the EU expresses its concern over the recent military actions undertaken by Turkey on Iraqi territory," said a statement issued by Portugal, which holds the EU's rotating presidency until the end of the month.

"The presidency calls on the Turkish authorities to exercise restraint, to respect the territorial integrity of Iraq and refrain from taking any military action that could undermine regional peace and stability," it said.

"The presidency reiterates the importance of reinforcing the dialogue and cooperation between the governments of Turkey and Iraq in order to ensure that the Iraqi territory is not used for any terrorist actions against Turkey."

The strikes by Turkish war planes Sunday killed seven people -- two of them civilians, according to the rebels. Local officials also said that infrastructure was damaged and villagers forced to flee.

In October, the Turkish parliament authorised cross-border military operations but Ankara had held back from any ground assault amid strong lobbying by Washington.

Turkey has accused Iraqi Kurds of tolerating and even backing the Kurdistan Workers' Party (PKK), which has waged a bloody campaign for Kurdish self-rule in Turkey's southeast since 1984. The conflict has claimed some 37,000 lives.

Ankara says thousands of PKK militants enjoy unrestricted movement in northern Iraq and are able to obtain weapons and explosives there.

The PKK is listed as a "terrorist" group by Turkey and much of the international community.