A number of residents fled in terror last week, not long after the town fell into the terror group's hands, while others were ordered into a sports stadium. Their fate is unclear.

Gruesome convoy: ISIS militants paraded severed heads from the back of a pick-up truck after seizing control of the Libyan town of Bin Jawad (pictured, file photo). It is the fourth Libyan city to fall to the terror group.

It is feared ISIS may now try to seize more oil installations in the region, according to Mark Willis at The Sunday Times.

ISIS continued their assault on Libya's largest oil ports for a 2nd day after sweeping control of nearby Bin Jawad

Heavy weapons and suicide bombers, including a 15-year-old boy, were used as part of the assault, which left two storage tanks of crude oil on fire.

Bin Jawad is 20 miles from Sidra and 36 miles from Ras Lanuf, leading to concerns the town could be used by ISIS to stage similar attacks.

It was captured earlier this month, with hundreds of government workers rounded up by the terrorist group and many families forced out of their homes.

One eyewitness who escaped Bin Jawad told The Sunday Times: 'They drove through the town after Friday prayers with men in the back of pick-ups holding severed heads, 'I counted three heads.'

Other residents were told their homes now 'belonged to Islamic State' and that they had to leave.

Most of the 200 local men arrested had worked for security forces or government ministries, with relatives now fearing for their loved ones' safety.

ISIS also raided shops, seizing cigarettes and destroying them on a large bonfire.

An Egyptian worker was publicly lashed 80 times after being caught smoking on the street, while residents also described similar atrocities being carried out as those witnessed by civilians in ISIS strongholds in Iraq and Syria.

Libya claims France struck ISIL in Sirte, Bin Jawad

The Libyan National Army claims French aircraft has attacked an ISIL convoy on Sunday near the Libyan city of Sirte.

According to the LNA loyal to the West-backed Tobruk government, the air strikes against ISIL have beed conducted in Libyan cities of Sirte and Bin Jawad.

Sirte has been controlled for months by the terrorist group, which has used it as a base from which to try to expand its presence in Libya.

Earlier, the witness account could not be verified, and the air force allied to one of Libya's competing governments, based in the east of the country, said it had not carried out any strikes.