Firefighters have been battling a fire at an oil refinery that supplies much of the fuel to produce power for Baghdad.
Iraqi oil officials said on Monday that the plant had been hit by a Katyusha-type rocket.
Assim Jihad, a spokesman for Iraq's oil ministry, said that a rocket had landed on a storage tank for refiined crude.
The Iraqi government also issued a statement blaming the inferno on a "terrorist attack", but said that the rockets had struck a benzine pipeline at the facility.
However, the US military later issued a statement saying that the blaze "was the result of an industrial accident".
Jihad said that there were no casualties from the fire but the US military statement said that it was unclear whether anyone had been killed or wounded.
clipped from: english.aljazeera.net