At least eight people were killed and 20 wounded when a fuel truck driven by a suicide bomber exploded on Friday in western Baghdad, reports said.
The blast took place in the al-Mansour neighbourhood, CNN quoted a Yarmouk Hospital officials as saying.
Fifteen people, including women and children, were in critical condition, it added.
The street on which the blast took place is close to several embassies.
The neighbourhood is also home to many prominent Iraqi politicians.
The attack came close on the heels of a visit to Iraq by US Defence Secretary Donald Rumsfeld.