A suicide car bomb attack killed at least 35 people and wounded 138 others outside the gates of a recruitment center for the new Iraqi army in Baghdad early Thursday, Iraqi health ministry said.

Iraq's new Prime Minister Iyad Allawi accused foreign states of being behind the suicide car bombing.

"Some foreign countries, through these cowardly acts, hope to affect Iraq," said Allawi, speaking at the scene of the carnage of the bombing that left bloodied body parts strewn across the street.

"It is new proof of the will of certain people to strike a blow against our people and I regret the large number of Iraqi victims," he added.

"I want to assure you that such attacks will not prevent Iraqis from marching towards peace and stability," the premier pledged, adding that those who carried out such attacks would be dealt with firmly.

Violence surged in Iraq ahead of the transfer of power from the US-led coalition force to the Iraqi government on June 30.