Donald Trump says Iran seems to be "standing down", following its attack on two bases in Iraq housing US and coalition troops.
The US President has confirmed the United States suffered no casualties in the strikes last night, and that no American or Iraqi troops were killed.
The strikes were carried out by Tehran in retaliation for the US killing of top Iranian general Qasem Soleimani on Friday.
Iran's supreme leader described the strikes as a warning - insisting that the presence of the US in the Middle East has to end.
In a televised statement today, Mr Trump said there was minimal damage caused by last night's bombings.
"As long as I am President of the United States, Iran will never be allowed to have a nuclear weapon." pic.twitter.com/7lzGY5fWz3
— The White House (@WhiteHouse) January 8, 2020
He observed: "Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world."
However, he added: "As we continue to evaluate options in response to Iranian aggression, the United States will immediately impose additional punishing economic sanctions on the Iranian regime.
"These sanctions will remain until Iran changes its behaviour."
The US President again defended the US assassination of Soleimani, claiming the general's hands "were drenched in both American and Iranian blood".
He also called on UK, Germany, France, China and Russia to "break away from the remnants" of the Iran nuclear deal.