The US Geological Survey said the natural disaster struck around 200km north east of Baghdad.
An Iraqi meteorology official told Reuters that the strong quake which hit parts of Iraq on Sunday, including the capital Baghdad, was measuring 6.5 magnitude.
The quake was even felt in the Iranian capital Tehran, with some villages hit by power outages, Iranian state TV reported. The centre was reported by the USGS to be in the southeast of Iraq's Sulaymaniya province, close to the Iranian border.
"According to the latest toll, six people were killed in Qasr-e Shirin and one in Azgaleh", Kermanshah province governor Houshang Bazvand told the ISNA news agency.
No casualties have yet to be reported.
'I thought at first that it was a huge bomb.
Health officials said most of the wounded were in Darbandikhan, 75 kilometres (47 miles) east of the major city of Sulaimaniyah in the semi-autonomous Kurdistan region.
It was felt for about 20 seconds in Baghdad, and sometimes for longer in other provinces of Iraq. "But then I heard everyone around me screaming 'Earthquake!'". CNN reports that at least 6 people have been reported dead in Iraq, and dozens more are injured.
The deadliest quake in Iran's modern history happened in June 1990.