An official affiliated to the Iranian Consulate in Karbala quoted local Iraqi officials that the explosion was happened when fire in a business center resulted in the explosion of a fuel storage tank in the building.
A number of Karbala citizens left injured by the explosion but no Iranian pilgrim was wounded, the official told the Islamic Republic News Agency.
The explosion happened in east of Karbala, four kilometer from the holy shrines.
Some local and regional news outlets had announced earlier that a number of people were killed and injured as the result of a terrorist action in Karbala on Tuesday afternoon.
Karbala is a popular Shia Muslim pilgrimage destination.
In 2015, some 17 million pilgrims visited the Iraqi town.
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