According to three police officials, seven people have been killed in the attack so far and more than 25 others wounded.
The officials spoke on condition of anonymity in line with regulations.
They also said the death toll from the attack inside a crowded market in Baghdad’s Tayaran square could rise as some wounded people were in a critical condition.
Iraqi state television reported it was a suicide bombing.
After years of deadly sectarian violence, suicide bombings have become relatively rare in the capital. The last such attack took place in June 2019 and left several people dead.
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