In his address, from the grand foyer of the White House, and flanked by his top defence and security officials, Mr Trump told Americans they should be "extremely grateful and happy" that no US citizen was harmed in the attacks.
"Iran appears to be standing down, which is a good think for all parties concerned and a very good thing for the world," he said. Shortly after the speech, one of Iraq's leading clerics, Moqtadr al Sadr said the crisis was over and he called on militias in the country to be patient and not re-start military action - but the Iraqi military has since said that two rockets have fallen on the Green Zone in Baghdad. No casualties have been reported.
Mr Trump defended his decision to target Iran's Major General Qassem Soleimani who was killed in a US drone strike in Baghdad, Iraq, last Friday.
The president called him a "ruthless terrorist", saying the general's hands were "drenched in both American and Iranian blood" and he had been planning new attacks. "But we stopped him," he added.Not backing down from his preparedness to attack, Mr Trump said the US military had been "completely rebuilt" under his administration, saying: "Our missiles are big, powerful, accurate, lethal and fast... the fact that we have this great military equipment, however, does not mean we have to use it. We do not want to use it."
"Peace and stability cannot prevail in the Middle East as long as Iran continues to foment violence, unrest, hatred and war," he said. "Your campaign of terror, murder, mayhem, will not be tolerated any longer."
But he moved to strike a more positive tone, saying the US and Iran should work together on shared priorities, adding: "To the people and leaders of Iran: We want you to have a future and a great future - one that you deserve. One of prosperity at home and harmony with the nations of the world.
"The US is ready to embrace peace and all who seek it."He made his conditions clear, though: Iran must give up its nuclear ambitions and he demanded that the UK, France, China, Russia and Germany follow his lead and ditch the Iran nuclear deal (JCPOA).
This came just hours after Boris Johnson told MPs that resurrecting the deal is the best way forward for solving the crisis in the Middle East.
In what some will say is posturing by Mr Trump ahead of an election campaign, he opened his speech by telling reporters: "As long as I am president of the US, Iran will never be allowed to have a nuclear weapon."
Mr Trump has made no secret of his hatred of the Iran nuclear deal, and pulled the US out of it in March 2018.
He said: "For far too long - all the way back to 1979 to be exact - nations have tolerated Iran's destructive and destabilising behaviour in the Middle East and beyond. Those days are over."
Addressing the other signatories on Wednesday, he said: "The very defective JCPOA expires shortly anyway and gives Iran a clear and quick path to nuclear breakout.
"Iran must abandon its nuclear ambitions and end its support for terrorism.
"The time has come for the United Kingdom, Germany, France, Russia and China to recognise this reality.
"They must now break away from the remnants of the Iran deal - or JCPOA - and we must all work together towards making a deal with Iran that makes the world a safer and more peaceful place."
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