He said there were no Iraqi groups that wanted to push towards a war, two days after a rocket fired in Baghdad landed close to the US Embassy.

It was the latest in a series of regional attacks the US believes may have been inspired by Iran.

No one has claimed responsibility for the rocket fired on Sunday into the heavily fortified Green Zone, which houses government buildings and diplomatic missions.

US government sources said Washington strongly suspects Shi'ite militias with ties to Tehran were behind the rocket attack.

Iran has rejected allegations of involvement in attacks.

US President Donald Trump said on Monday that Iran would be met with "great force" if it attacked US interests in the Middle East.

UN Iraq envoy Jeanine Hennis-Plasschaert told the UN Security Council on Tuesday that Iraq could be "a stabilising factor in a turbulent region" and instead of an arena for conflict, the country could offer a space for regional reconciliation, paving a path for a regional security dialogue.

"At the same time, we cannot ignore that Iraq faces serious challenges in preventing its territory from becoming the theatre for different competitions," Hennis-Plasschaert said.

"So, to all those feeling challenged: placing a further burden on Iraq is truly the last thing it needs," she warned.

Without naming countries, deputy Russian UN Ambassador Vladimir Safronkov told the Security Council that the escalation of tensions in the Gulf had to stop and "confrontation should be replaced by dialogue".

"Attempts to draw the country (Iraq) into an artificially stoked confrontation with the Islamic Republic of Iran are absolutely counterproductive and will only have a negative impact on the situation within Iraq and the region as a whole," he said.

Australian Associated Press