Turkish-backed Syrian rebels have advanced into Ras al-Ain in northeast Syria but it was unclear how far, with Turkey saying the town centre had been taken and Kurdish-led forces denying this.
The battle for Ras al-Ain raged as Turkey pursued a four-day-old, cross-border offensive against a Syrian Kurdish militia despite an outcry from the US and EU and warnings of possible sanctions unless Ankara desisted.
US President Donald Trump's administration said Turkey's incursion was causing "great harm" in relations with its NATO ally.
Germany, also a NATO ally, said it was banning arms exports to Turkey and the head of the Arab League denounced the offensive.
Turkish troops and Turkish-backed Syrian rebels gather outside the border town of Ras al-Ain. Source: AFP
Ankara began its onslaught against the YPG militia, which it says is a terrorist group backing Kurdish insurgents in Turkey after Mr Trump withdrew some US troops who had been backing Kurdish forces in the fight against Islamic State.
The assault has raised international alarm over its mass displacement of civilians and the risk it could trigger a revival of an Islamic State insurgency in Syria, with a heightened possibility of IS militants escaping Kurdish prisons.
The Kurdish-led administration in Syria's northeast said nearly 200,000 people had been uprooted so far by the fighting, while the UN World Food Program put the figure at more than 100,000 in the towns of Tel Abyad and Ras al-Ain.
Turkey's stated broader objective is to set up a "safe zone" inside Syria to resettle many of the 3.6 million Syrian war refugees it has been hosting.
Mr Erdogan has threatened to send them to Europe if the EU does not back his assault.
Turkish officials posted photos on Saturday showing deserted streets and Syrian rebels standing on Kurdish militia flags in Ras al-Ain.
"The (Syrian rebel) National Army took control of (Ras al-Ain) town centre this morning," a senior Turkish security official said, referring to the Syrian rebels Ankara backs.
Turkish-backed Syrian rebels watch as smoke billows from the border town of Ras al-Ain. Source: AFP
"Inspections are being conducted in residential areas. Mine and booby trap searches are being carried out."
The Kurdish-led Syrian Democratic Forces (SDF), in which the YPG comprises the main fighting element, denied losing the centre of Ras al-Ain.
SDF spokesman Marvan Qamishlo said they had only carried out a "tactical retreat" in response to hours of heavy Turkish bombardment.
"Now the SDF's attack has started and there are very fierce clashes," he told Reuters.
Head of the SDF media office Mustafa Bali said the SDF was still in control inside Ras al-Ain, and fierce clashes were going on there.
Displaced Syrians, who fled their homes in the border town of Ras al-Ain, receive humanitarian aid in the town of Tal Tamr. Source: AFP
However, the senior Turkish official said "nearly all" YPG forces had fled south from Ras al-Ain.
Turkish artillery continued to shell parts of the town, a Reuters reporter said.
The SDF holds most of the northern Syrian territory that once made up Islamic State's "caliphate" in the country, and has been keeping thousands of fighters from the jihadist group in jail and tens of thousands of their family members in camps.
