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Donald Trump has declared Iran appears to have 'stood down' after missiles were fired at two US air bases in Iraq last night.

The US President backtracked on threats of war, saying: "We suffered no casualties, all of our soldiers are safe and only minimum damage was suffered at our military bases.

"Iran appears to be standing down which is a good thing for all parties concerned and a very good thing for the world."

In a speech delivered from the White House, Trump said: "Last week we took decisive action to stop a ruthless terrorist from threatening American lives.

"With my direction the US eliminated top terrorist Soleimani.

"Soleimani was personally responsible for some of the absolutely worst atrocities...he fuelled bloody civil wars all across the region.

(Image: AFP via Getty Images)

"He viciously murdered thousands of us troops including the planting of roadside bombs that maim and dismember victims.

"Soleimani was drenched in American and Iranian blood - he should have been terminated long ago."

Iran launched missile attacks on two US bases in Iraq - the Al-Assad airbase in the south and a US-operated base in Irbil in the north.

The attacks were in response to the assassination of top general Qassem Soleimani on Friday.

Soleimani, viewed as a hero in Iran and said to have been the second most powerful man in the country, died in a targeted attack at Baghdad airport moments after landing in Iraq.

(Image: Anadolu Agency via Getty Images) (Image: REUTERS)

Trump tweeted in the immediate aftermath: "All is well! Missiles launched from Iran at two military bases located in Iraq. Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning."

He has previously said that the US would "quickly and fully strike back", "perhaps in a disproportionate manner" if Iran responded.

(Image: IRIB/AFP via Getty Images)

In a threatening message, the US President wrote: "The United States just spent Two Trillion Dollars on Military Equipment. We are the biggest and by far the BEST in the World! If Iran attacks an American Base, or any American, we will be sending some of that brand new beautiful equipment their way...and without hesitation!"

And he continued: "These Media Posts will serve as notification to the United States Congress that should Iran strike any U.S. person or target, the United States will quickly & fully strike back, & perhaps in a disproportionate manner. Such legal notice is not required, but is given nevertheless!"

(Image: REUTERS)

Iran's foreign minister Javad Zarif appeared to strike a conciliatory tone when he said action against the US had "concluded".

He also said Iran did not want to escalate the crisis, writing on Twitter in English this morning: "Iran took & concluded proportionate measures in self-defense under Article 51 of UN Charter targeting base from which cowardly armed attack against our citizens & senior officials were launched. We do not seek escalation or war, but will defend ourselves against any aggression."

This morning Iran's Supreme Leader doubled down on calls for US troops to be expelled to the region - and hinted that further strikes could follow.

According to semi-official state news agency Fars, Ayatollah Seyed Ali Khamenei said this morning that more is likely to follow.