At least 16 people have been killed by a car bomb targeting Shi'ite pilgrims in Iraq.

Monday's bombing near Hilla, south of Baghdad also wounded more than 30 people.

The attack comes at the height of the Ashura commemoration ceremonies marking the anniversary of the seventh century death of Imam Hussein, a grandson of the Prophet Muhammad.

The blast took place at a time of heightened concern about Baghdad's ability to handle security after U.S. forces withdraw at the end of the month.

The pullout will end a military presence that began with the 2003 U.S.-led invasion that toppled former dictator Saddam Hussein.

Violence in Iraq has declined from the peak of sectarian fighting in 2006 and 2007, but insurgent attacks remain common.