Iraqi police say at least eight people were killed and two wounded when gunmen opened fire on a bakery in eastern Baghdad early Thursday morning.
Police say the victims included employees of the bakery and its customers.
Hundreds of people have been killed in sectarian violence and insurgent attacks in the Iraqi capital in recent weeks as U.S. and Iraqi forces struggle to stem the bloodshed.
President Bush has accused Iran and Syria of working to undermine Iraq's democracy.
In Washington, a top State Department official, David Satterfield, told a U.S. Senate Committee Wednesday the United States is ready "in principle" to begin talks with Iran about its activities in Iraq.
But U.S. officials have said talks with Iran can begin only after Tehran suspends its nuclear program.
U.S. congressional Democrats, who will control the Senate and House of Representatives in January, favor bilateral U.S.-Iran talks on both Iraq and Iran's nuclear program.
Some information for this report was provided by AP and Reuters
