President Donald Trump has said that Iran appears to be 'standing down' after it launched a missile attack on US military bases in Iraq.
The attack took place following the death of top Iranian general Qasem Suleimani.
State TV claim that Iran acted to avenge the US killing of Revolutionary Guard General Qassem Soleimani who died following a drone strike near Baghdad.
Trump, who was speaking from the foyer of the White House, also said that no Americans were harmed in Iran's ballistic missile strike on two Iraqi bases which house US troops.
General Qassem Soleimani was the head of Iran's elite Quds Force.
The president defended the targeted killing which happened last week and said that Americans should be "extremely grateful and happy" with the outcome.
He also added that "Iran will never be allowed to have a nuclear weapon", called for new nuclear negotiations to replace the one from 2015 and announced that also the US would be imposing additional "punishing" economic sanctions on the Iranian regime until the country "changes its behaviour".
Mr Trump announced he would ask NATO to become "much more involved in the Middle East process".
The president also used his address to speak directly to Iran, saying "we want you to have a future and a great future".
He said the United States is ready to embrace peace and all who seek it.
