Two explosions have rocked a hotel in the centre of Baghdad used by western journalists covering the aftermath of the Iraq war.
The Sheraton has been badly damaged by the blasts, thought to have been caused by attackers using at least one rocket-propelled grenade.
There are no firm details of casualties but it is reported some people have been slightly hurt.
The nearby Palestine Hotel and the Iraqi oil ministry are also thought to have been hit.
An attack against the Italian embassy was also thwarted after a homemade rocket launcher with 30 rockets linked to a timer and a battery was discovered and dismantled before it could be used.
Sky News correspondent David Bowden was asleep in the Sheraton hotel at the time - and was woken by the blasts.
He said the foyer of the building was "littered in debris." It has now been evacuated.
It is not known if journalists were the targets but this was possible, he pointed out.
He said the Sheraton was an obvious target "if anyone wants to deliver right to the front door of the world's journalists just how dangerous this place is."
Security at the hotel has been stepped up in recent weeks, with chicanes placed in the surrounding roads and troops backed by tanks on guard around the area.
Bowden added: "No suicide bomber could get in here with any kind of ease."
It was likely the attacks was intended to "put the frighteners on journalists and remind them no-one is safe in this place."
Fri Nov 21, 6:40 AM ET
BAGHDAD (AFP) - Two makeshift launchers with a total of 52 rockets in their tubes were found near the Italian embassy in Baghdad shortly after morning rocket attacks on Iraq's oil ministry and main media hotels.
The first launcher was found less than 300 metres (yards) away, the second some 600 metres (yards) away near a girls' school, AFP correspondents saw Friday.
They were attached to timers but had yet to fire.
Both were concealed in donkey carts, just like the rocket launchers used for attacks on the heavily-guarded Palestine and Sheraton Hotels, and oil ministry complex.
A note in broken English was found with the first launcher.
"We asking yous do not work to the invading forces until Iraq affranchisement," said the message, of which AFP's view was impaired by the hand of the police officer clutching it.
"To all the forces ... (specially the Jews ... American forces) get ... from our country. Do not ... let your mother crying."
The message carried an Arabic text on the reverse side.
"I saw a man stop his cart in front of my shop and run away. I went and alerted the police straight away," said Mohammed Sabbah, who witnessed the placing of the first launcher.
The other donkey cart was marked: "My love, my heart is with you."
Italy's high-profile involvement in the US-led occupation of Iraq has already made it a target for attack.
A November 12 suicide bombing of Italy's police base in the southern city of Nasiriyah killed 19 Italians and nine Iraqis.
Nicolo Pollari, head of Italy's military intelligence services, said Tuesday the risk of renewed attacks on Italian interests in Iraq was "very high".
US Defence Secretary Donald Rumsfeld warned last week that countries contributing troops to the US-led occupation of Iraq needed to do so "with their eyes open."
The funerals of the Italian soldiers, carabinieri paramilitary police and civilians killed in Nasiriyah sparked a nationwide outpouring of grief in Italy.
President Carlo Azeglio Ciampi cut short an official visit to the United States to return home and attend.
The mounting threat to Italian interests has prompted growing domestic opposition to Italy's deployment of 2,300 troops in southern Iraq.
Just over half of Italians, 50.9 percent, want their troops to remain in Iraq, a poll published La Repubblica newspaper found last week.
However, a large minority, 44.8 percent, believe the government of Prime Minister Silvio Berlusconi should recall them.
Earlier this week, Italy's representative on Iraq's Coalition Provisional Authority resigned in protest at what he said were disagreements over the US-led body's policies here.
"I am in deep disagreement with the policies of the coalition, whether they be about the economic reconstruction of the country or about the democratic transition," Marco Calamai told Italian newspapers.