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A resident inspects his damaged shop the day after a bomb attack in southern Baghdad April 29, 2010.SAAD SHALASH

A car bomb in Baghdad killed eight people and wounded 20 others on Thursday as violence continued to threaten Iraq's fragile stability amid a row over last month's election results.

The blast occurred near a liquor shop in Baghdad's southwestern al-Shurta al-Rabaa area, an Interior Ministry source said. Alcohol shops have been targeted by both Sunni Islamist insurgents and Shi'ite militia in the past.

A medical source in a hospital gave a lower death toll of three people killed and 28 wounded.

Overall, violence in Iraq has fallen sharply in the last two years.

But a series of recent attacks has raised fears that Iraq could tip back into sectarian violence after a March election produced no outright winner and left a political vacuum for insurgents to exploit.

Shi'ite-led groups including Prime Minister Nuri al-Maliki's faction are trying to overturn the slim lead of a Sunni-backed cross-sectarian alliance and deny it a chance to try to form the next government.

That could anger minority Sunnis, who dominated Iraq until Saddam Hussein was toppled in the 2003 U.S.-led invasion.

Fifty-six people were killed last Friday in a series of bombings around Shi'ite areas of Baghdad.

Those attacks, which officials blamed on al-Qaeda, were seen as a possible backlash after Iraq touted a string of blows against the Sunni Islamist insurgency and killed two of its senior leaders in Iraq.

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