The explosions were caused by mortar shells.
According to the Iraqi military the shells hit an “abandoned lot” causing “no casualties or physical damage”.
However a source within the Green zone told Reuters the mortars landed near the Egyptian Embassy.
The attack took place late on Thursday night.
Local Iraqi media reported hearing sirens close to the US Embassy.
US officials told journalist Adam Kredo: “We are closely following reports of possible explosions outside of the Green Zone in Baghdad.
They added that US staff are: “Taking precautions”.
The mortars were fired from Zayouna neighbourhood in eastern Baghdad according to al-Ghad Press.
It comes just two days after ten Iranian backed Shia militia groups issued a joint statement threatening to attack foreign interests in Iraq.
The statement said: “We will deal with them as occupying forces.
“We will use our legitimate fights by employing all possible means to force them out of the country.”
It claimed there is a “Anglo-American led dirty and dangerous conspiracy to impose a devilish coalition” on Iraq.
Tamer El-Ghobashy, a Baghdad based Washington Post reporter, reported that this is the first such attack on the Baghdad Green Zone since late 2015.
The Green Zone is a highly compound with houses Iraqi government buildings and foreign embassies.
It was frequently targeted by mortar and bomb attacks during the anti-US insurgency from 2003-2011.
Iraq is currently gripped by turmoil as rival politicians attempt to form a government.
No group has claimed responsibility for the attack.
More to follow…