At least two missiles struck inside Baghdad's green zone, with one hitting an area near the US embassy, said reports quoting Iraq’s military press office early Monday.
The attack took place in a high-security zone in the Iraqi capital, where government headquarters and foreign missions are located.
According to reports, the missiles landed inside the Green Zone, including one that hit the ground near the embassy itself. No casualties or structural damages have been reported.
Several videos shared on social media showed that alarm sirens were triggered after two loud explosions were heard.
The US has blamed Iran for the missile attack.
The Green Zone, a diplomatic quarter in central Baghdad that has repeatedly come under rocket fire in recent months, hosts many international facilitates including the US embassy and an Iraqi base.
Tensions soared between the two countries after top Iranian General Qasem Soleimani was assassinated in a targeted airstrike, at the behest of the US President, Mr. Donald Trump.
In retaliation, Iran had fired on Iraqi bases housing US troops raising fears of war. According to figures released by Pentagon, 64 American soldiers were injured in the attack.
However, Mr. Trump had initially said no Americans were hurt by the missiles fired on a base housing US soldiers in the country's west on January 8.
The attack comes hours after the Iraqi Prime Minister-designate,Mr. Mohammed Allawi, withdrew his candidacy for the post.
Announcing the withdrawal of his candidacy, Mr. Allawi accused political parties of obstructing him.
'I heard that there is a plan to prevent the Cabinet from receiving confidence from the parliament in order to continue corruption and thefts because the ministries will be headed by independent and impartial ministers. They are paying money to the members of the parliament to fulfill their scheme,'Mr. Allawi tweeted.
The Iraqi parliament failed to approve Mr. Allawi's cabinet for the second time amid political infighting. The President, Mr. Barham Salih, will begin consultations to choose a new candidate for the prime minister within 15 days, reports said.