An investigation had been launched into the latest explosion in Muthanna province, south of Baghdad, that killed "two children and wounded 28 people", state media said.

The attack came after a blast targeted an oil pipeline in the north of the country, according to a statement by the Kurdistan Regional Government released late Friday.

The statement said oil exports had been suspended after "terrorists" attacked the pipeline crossing the autonomous region to the Turkish port of Ceyhan on Wednesday evening.

It did not specify on whose territory the explosion took place nor who might have been behind it.

The pipeline built by the Kurds has a capacity of 600,000 barrels per day, but exports of oil under their control currently averages 300,000 bpd as demanded by OPEC.

Nearly 90 percent of the Iraqi government's budget comes from oil revenues.

Like Turkey, Iraqi Kurdistan considers the Kurdistan Workers' Party (PKK), which has bases in the autonomous region, as a "terrorist" organisation.