A missile struck a helipad inside the United States embassy compound in Baghdad, Iraqi security officials said.
Two security officials confirmed the incident, according to a report by the Associated Press.
Footage from the Associated Press showed a column of smoke rising over the compound on Saturday morning.
The sprawling complex is one of the largest US diplomatic facilities in the world.
The facility has repeatedly been targeted by rockets and drones fired by Iran-aligned militias.
Images circulating online also showed smoke and dust rising above the embassy after the strike.
There was no immediate comment from the United States embassy in Baghdad.
On Friday, the embassy renewed its level-four security alert for Iraq.
The embassy warned that Iran and Iran-aligned militia groups have previously carried out attacks against United States citizens, interests, and infrastructure.
The alert stated that the groups “may continue to target them”.
The development comes two days after four crew members were confirmed dead when a US military refuelling aircraft crashed in western Iraq.
In a statement on Friday, United States Central Command said the Boeing KC-135 Stratotanker went down at approximately 2pm Eastern Time on March 12 during operations in the region.
