The explosion took place in the busy Shiite business district of Hay al-Amil on Monday evening.
The attack was claimed in an online statement by the Daesh (also known as ISIL) Takfiri terrorist group, which gave a toll of 23 dead.
The Takfiri terrorists have suffered a string of defeats in Iraq over the past two years, but have continued to regularly carry out attacks in and around Baghdad.
A series of bombings claimed by Daesh have struck the Iraqi capital since the beginning of an operation to retake the northern Iraqi city of Mosul.
Iraqi army soldiers and allied fighters have been engaged in the offensive to retake Mosul, the Daesh Takfiri terrorists’ last stronghold in the Arab country, since October 2016.