Barack Obama announced at a White House press conference that all American troops will leave Iraq by the end of December, a decision forced by the final collapse of lengthy talks between the US and the Iraqi government on the issue.
The Iraqi decision is a boost to Iran, which has close ties with many members of the Iraqi government and which had been battling against the establishment of permanent American bases.
Obama attempted to make the most of it by presenting the withdrawal as the fulfilment of one of his election promises.
"Today I can report that, as promised, the rest of our troops in Iraq will come home by the end of the year. After nearly nine years, America's war in Iraq will be over," he told reporters.
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