Mortar hits Iraq's foreign ministry compound

The shell, which struck inside the foreign ministry compound, did not cause any casualties, Police Captain Ali Khadim told AFP.

"One mortar hit inside the compound," Khadim said, as US troops cordoned off the compound. "There were no casualties."

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The US military confirmed there was an explosion and said US troops were involved in a shoot-out in the neighbourhood minutes after the blast.

"There was a firefight in the same area. We do not know if they were connected or not," said Staff Sergeant Amy Abbott, without giving further details.

The shell hit in the ministry's garden, ripping a hole in the ground and shattering windows in the building, said Umar Husam of the US-sponsored Iraq Facilities Protection Service.

Two US tanks, one humvee armoured vehicle and several soldiers guarded the street outside the ministry complex, keeping passers-by away from the gates.

The area, also home to the coalition's main offices in Saddam's former republican palace and the Baghdad convention centre, is among the most heavily guarded neighbourhoods in the city.