At least three people, all US soldiers, have been killed in a powerful car bomb explosion that ripped through the centre of Baghdad early on Wednesday. Locals said the blast destroyed a police post and tore the front of a hotel in the Iraqi capital's upmarket Karrada district, setting fire to cars nearby. "There are at least three dead," a local police official said. The police said an ambulance packed with explosives drove up to the Shahine hotel at high speed and detonated. Black smoke was seen pouring from the hotel as dazed guests emptied onto the street in their pyjamas. The hotel is frequented by foreign businessmen. A police outpost on the other side of the road also bore the brunt of the blast. A large portion of the hotel is occupied by Iraq 's interim minister for labour Sami Azara al-Majun, according to security officials. The minister was praying when the blast happened, but he escaped safe, his guards stated. The early morning blast is the latest in a series of deadly explosions that has rocked Baghdad recently. For the last 24 hours sixteen casualties, including 6 foreign soldiers and 10 Iraqi, have been left dead on the streets of Iraqi cities. The United Nations agreed Tuesday to send a team to Iraq to help break the impasse over electing a new government, as roadside bombings underscored concerns about security in the volatile nation. In Paris, Annan said he believes the United Nations can play "a constructive role" in helping to break the impasse, and would send such a team to Iraq "once I am satisfied that the (coalition) will provide adequate security arrangements. Annan said the mission would solicit the views of Iraqis to find alternative ways to choose a provisional government.