The Iraqi government, supported by pro-Tehran factions, decried an "aggression". It accused a US-led international coalition but stopped short of pinning the blame on Washington, as regional tensions soar amid the Israel-Hamas war.
"A drone targeted the logistical support headquarters of Hashed al-Shaabi," mainly pro-Iranian former paramilitary units integrated into the Iraqi armed forces, said the security official.
The strike killed "two members and wounded seven others", said the official, speaking on condition of anonymity.
A Hashed source, also asking not to be named, confirmed the death toll and charged that the United States was behind the attack.
Harakat al-Nujaba, one of the Hashed's factions, said in a statement that "the deputy commander of operations for Baghdad, Mushtaq Talib al-Saidi", had been "martyred in a US strike".
It came amid heightened regional tensions since war broke out between US ally Israel and Iran-backed Hamas militants in the Gaza Strip, triggered by the Palestinian group's deadly October 7 attack.
There was no immediate comment from US officials, whose forces in Iraq and neighbouring Syria have faced a surge in attacks since the start of the Gaza war.
Videos shared on a Telegram channel linked to the Hashed showed columns of smoke rising above the area of the strike on Baghdad's Palestine street, normally a bustling commercial road.
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