(Updates with source of blast)

BAGHDAD, March 26 (Reuters) - A rocket landed in Baghdad's heavily fortified international Green Zone on Monday, rocking the U.S. embassy but causing no casualties, witnesses said.

U.S. embassy spokesman Lou Fintor would not say exactly where the rocket landed for security reasons but confirmed it had crashed into the sprawling international zone, which also houses the Iraqi government and other foreign embassies.

"Preliminary reports indicate the source of the explosion was a rocket. There were no casualties and minimal damage," he said.

A rocket landed close to a building where U.N. Secretary General Ban Ki-moon and Iraqi Prime Minister Nuri al-Maliki were holding a news conference in the Green Zone last week.

Monday's blast took place just hours after outgoing U.S. ambassador Zalmay Khalilzad told reporters that he was cautiously optimistic about the future in Iraq.

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