Hours after a dozen Iranian missiles were fired at two bases housing US troops in Iraq, President Donald Trump said: "All is well!" Trump took to Twitter to say that casualty and damage assessments are ongoing but added, "So far, so good!"

Iran fires ballistic missiles at US Forces
US warplanes leaving UAE air base after Iran fires ballistic missiles at US Forces in Iraq.Twitter

Trump confirmed that he will be making a statement on the strikes on Wednesday morning (in US).

"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," Donald Trump's tweeted.

The Iranian missiles came today in retaliation for an American drone strike that killed top Iranian General Qassem Soleimani.

Iran strikes back at US

Qassem Soleimani funeral
Iranian people attend Qassem Soleimani's funeral.Reuters

Iran said it launched a missile attack on US-led forces in Iraq in the early hours of Wednesday in retaliation for the US drone strike on an Iranian commander whose killing has raised fears of a wider war in the Middle East.

Tehran fired more than a dozen ballistic missiles from Iranian territory against at least two Iraqi military bases hosting US-led coalition personnel at about 1.30 am local time, the US military said on Tuesday.

Iran's Islamic Revolutionary Guards Corps confirmed they fired the missiles to retaliate for last week's killing of Qassem Soleimani, according to a statement on state TV.

The statement advised the United States to withdraw its troops from the region to prevent more deaths, state TV said.

The Pentagon did not provide reports of casualties in the attack.

"We are working on initial battle damage assessments," Pentagon spokesman Jonathan Hoffman said in a statement, adding the bases targeted were al-Asad airbase and another in Erbil, Iraq.

"As we evaluate the situation and our response, we will take all necessary measures to protect and defend US personnel, partners, and allies in the region."

US President Donald Trump, who visited the al-Asad airbase in December 2018, has been briefed on reports of the attack and was monitoring the situation, White House spokeswoman Stephanie Grisham said.

"We are aware of the reports of attacks on US facilities in Iraq. The president has been briefed and is monitoring the situation closely and consulting with his national security team," Grisham said in a statement.

US Secretary of State Mike Pompeo and US Defense Secretary Mark Esper arrived at the White House following news of the attack. It was unclear what response, if any, the United States was planning.

Hours earlier on Tuesday, Esper said the United States should anticipate retaliation from Iran over Friday's killing in Iraq of Soleimani, commander of the elite Quds Force.

"I think we should expect that they will retaliate in some way, shape or form," he told a news briefing at the Pentagon, adding that such retaliation could be through Iran-backed proxy groups outside of Iran or "by their own hand."

"We're prepared for any contingency. And then we will respond appropriately to whatever they do."

Stock markets in Asia fell sharply on news of the rocket attack, while investor safe havens including the Japanese yen and gold shot higher. The US crude prices surged almost 5 per cent on worries any conflict could cut oil supplies.

The US Federal Aviation Administration said it would prohibit US civil aviation operators from operating in the airspace over Iraq, Iran, the Gulf and the Gulf of Oman. Singapore Airlines had already diverted all flight routes from Iranian airspace.

(With agency inputs)