One child was killed and three more people were wounded on Friday when two mortar shells hit a house in central Baghdad (search), FOX News has learned.

Police said the blasts had targeted the al-Sadeer Hotel (search), where many foreigners are staying, but hit a nearby house instead. Crowds gathered and police fired AK-47s into the air to push people back.

Some of those injured were in serious condition, a police officer said on condition of anonymity. Witnesses said the house was empty and those injured had been playing in the street.

"Suddenly, we heah on my head," said Abbass Jawad Mohammed, who was inside a nearby home. "After that, I don't know what happened."

Witnesses said children had been playing in the street just before the blast. One barefoot woman raced out into the street, screaming and looking for her child.

"We lost him, we lost him," she screamed.

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The Associated Press contributed to this report.