Baghdad: A car bomb killed five people and wounded 28 after targeting Iranian pilgrims in Iraq's holy Shiite city of Karbala on Monday, a provincial official said.

"It was a car bomb. There were Iranian pilgrims in the area. They were targeted," said Mohammad Al Moussawi, head of the Kerbala provincial council.

Other reports put the death toll much higher. According to the DPA agency at least 48 people were killed and 16 injured.

Political tensions in Iraq have been stoked by the failure of its leaders to agree on a new government eight months after an inconclusive election.