Iraqi forces restored order around the Iranian consulate in the holy city of Karbala on Monday, a day after protesters attacked the building, a local security source said.
"Anti-riot forces and police managed to control the situation around the consulate," the source said, requesting anonymity because he was not authorized to speak to the media.
He said 12 protesters were injured in clashes around the building.
On Sunday, protesters attacked the consulate in the southern city, bringing down the Iranian flag and replacing it with Iraqi flag.
"Security forces managed to prevent the outbreak of a fire in the consulate after protesters hurled Molotov cocktails at the building," the source said.
"The building was empty when protesters attempted to storm it," he said.
Iraq has been rocked by a second wave of protests since last week against deep-seated corruption, unemployment and lack of basic services.
At least 260 people have been killed and 12,000 others injured since the demonstrations began on Oct. 25, according to the High Commission of Human Rights.
Anger has been building in Iraq in recent years due to rising unemployment and rampant corruption. Many people in the country have limited access to basic services such as electricity and clean water.
According to World Bank figures, Iraq's youth unemployment is around 25%. It is also ranked the 12th most-corrupt country in the world by several transparency organizations.