A woman and child were among the victims, security sources told AFP. Four others were injured.
“Three people were killed and four others injured in an explosion in a covered market near the Mreydi souk in Sadr City,” Baghdad’s military operations command said in a statement, according to AFP.
It is unclear whether the blast was an act of terrorism, as no one has immediately claimed responsibility for an attack. An investigation has been launched.
Illegal weapons are known to be sold in the market, and authorities frequently carry out raids in the district. In June, an explosion at a house storing such weapons killed 16 and injured 30.
Sadr City is a poor Shiite district of the Iraqi capital. Sunni extremist groups like ISIS have previously targeted the area. Although ISIS has been largely defeated, its sleeper cells are still capable of launching attacks.
The Sayirun alliance of firebrand cleric Muqtada al-Sadr emerged as the biggest party list in Iraq's May 12 parliamentary election. Months on from the vote, Iraq is still without a new administration.
