updated 6/1/2008 12:14:21 PM ET 2008-06-01T16:14:21

A car bomb has exploded near the Iranian Embassy in Baghdad, and a police official says at least two civilians were killed and five other people wounded.

The official says the blast occurred during the morning rush hour in a parking lot across the street from the Embassy. He says the wounded include three Embassy guards.

The bombing underscores military warnings that insurgents remain a dangerous threat despite recent security gains that have pushed the number of Iraqi civilian casualties to their lowest levels in more than four years.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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