US will not respond militarily to Iran strikes

"The American people should be extremely grateful and happy — no Americans were harmed by the attacks," Trump said. "We suffered no casualties, and only minimal damage was sustained."

Trump said US forces "are prepared for anything" but noted that Iran "appears to be standing down." No Iraqis were harmed either, Trump said, crediting the Pentagon's decision to disperse its forces and early warnings of the missile attacks.

The Pentagon said two US facilities in Iraq were hit in the early morning hours local time today by a dozen missiles. Iran said it had taken "proportionate measures" in retaliation after the US killed Islamic Revolutionary Guard Corps Quds force commander Qasem Soleimani near Baghdad airport on 3 January.

The Iranian strike boosted oil futures, but prices fell back later as Iran indicated it would not carry out additional strikes and regional governments moved to ease tensions.

Trump took a less belligerent tone today compared with his remarks earlier this week, in which he threatened to obliterate Iranian cultural sites and other targets in case of an Iranian attack.

"As long as I am president, Iran will never be allowed to have nuclear weapons," Trump said. He appealed to Tehran to cooperate in combating Islamic group Isis, which he called "a natural enemy of Iran." And he appealed to the Iranian leaders to start negotiations. "The US is ready to embrace peace with all who seek it," Trump said.

But Trump's actions make such diplomacy difficult. Tehran has insisted on the lifting of US sanctions against Iranian oil sector and other segments of the economy before talks can start. Trump today said the US will respond to the attack on its bases by imposing even more sanctions. And Tehran highlighted Soleimani's key role in reversing Isis' gains in Iraq, while Trump spent much of his speech defending the decision to kill the Iranian commander, whom he called a terrorist.

Trump dished out blame for the attacks on his predecessor, Barack Obama, for signing the nuclear deal with Tehran. He called on the remaining participants in that nuclear agreement — France, Germany, the UK, China and Russia — to abandon it and force Tehran to negotiate a new broader agreement.

And Trump said he will ask Nato members to step up their involvement in the Middle East, noting that rising US oil and gas production has made him reassess the need for continued US involvement in that region.

"We are now No. 1 producer of oil and gas, we are energy independent, so we do not need the Middle East oil," Trump said.

The US effort to sign up Nato members for naval patrols of Mideast Gulf oil flows have fallen short. Albania and the UK are the only Nato members that have joined that effort, together with Australia and four Mideast Gulf Arab states.

Trump's remarks align with comments from congressional leaders this morning, where even his Republican allies urged caution and warned against starting a new war in the Middle East.

Senate majority leader Mitch McConnell (R-Kentucky) hailed what he called Trump's "patience and prudence," adding: "I believe the president wants to avoid conflict or needless loss of life."

By Haik Gugarats