Witnesses say others may be trapped under the debris from the building, which has partially collapsed and is in flames.
Update: Reuters is now carrying footage from the scene of the attack.
Over 300 Italians and 110 Romanians were stationed at the building, and everyone was believed to be in the building at the time of the explosion, which occured early in the morning. Approximately 15% of all Italian and Romanian forces in Iraq were stationed in this building.
It is not known as yet how many victims there are, but this appears to be the most deadly resistance attack to date. The destruction is so severe that it could potentially lead to the reduction or gradual withdrawl of Italian and Romanian troops in Iraq if casualties escalate significantly. It is quite possible that the Italian government, which joined the coalition despite overwhelming public opposition, may find itself destablized as a result of this disaster.