0249 GMT March 26, 2019
A vehicle packed with explosives was parked near a restaurant and a crowded market area in Qayyara, south of the city of Mosul, police said, Reuters reported.
Health officials and police had earlier put the death toll at four but said it could rise as some of the wounded were in a critical in condition.
No group immediately claimed responsibility, but Daesh terrorists often carry out such attacks.
Iraq's top military commander in Mosul Major General Najim al-Jabouri accused Daesh of carrying out the Qayyara attack.
"We are positive the car bomb attack was carried out by Daesh terrorists and we will bring them to justice," Jabouri said.
Iraq declared victory over Daesh in December, dislodging the group from all territories it held after its self-proclaimed caliphate, which extended into Syria, collapsed earlier in 2017.
The terrorists have since waged a campaign of kidnapping, killing and bomb attacks targeting civilians and security forces.
An Interior Ministry spokesman said the blast was a result of a “terrorist attack by a car bomb”.