In a restaurant in the city, where diners did not react to the initial sounds of the blasts, a witness told AFP he saw detonations caused by the embassy's air defences intercepting projectiles.

Another witness saw a fire on the edge of the embassy grounds from her balcony, with the blaze also reported by the security official, who said it was caused by a drone.

"The embassy was the target of a drone and rocket attack," the official said, speaking on condition of anonymity.

Iraq was drawn into the Middle East war after having long been a proxy battleground between the United States and Iran.

Strikes have targeted Iran-backed groups, which in turn have claimed daily attacks on US interests in Iraq and across the region.

In recent days pro-Iranian armed groups have carried out several attacks against the US embassy, located in a heavily fortified area of central Baghdad, and against an American diplomatic and logistics centre at the city's international airport.

On Monday evening into early Tuesday morning, attacks targeted the US diplomatic mission, while a drone crashed into a luxury hotel popular with foreign diplomats.