The attack involved three unmanned aerial vehicles that all carried explosives, Rudaw report, citing security officials of the Kurdistan Regional Government (KRG).

The sources said the drones hit two houses in the village of Bragh, only three kilometers away from the construction site of the new US consulate outside Erbil. No casualties were reported.

One drone did not explode. A video from the area shows heavy damage to a civilian residence.

In a statement on Saturday, Kurdistan's counter-terrorism unit confirmed the incident, adding that another drone had landed in a separate unpopulated area.

The US consulate condemned the incident on Twitter, saying it represented "a clear violation of Iraqi sovereignty".

It is the second such incident to rock the autonomous region in recent months. In April, unknown fighters sent explosive-laden drones into the northern Erbil airport, marking the first use of such weapons against a base for US soldiers in Iraq.

Reporter's code: 50101