President Barack Obama says the US will send 300 military advisers to Iraq to help fight Islamist-led insurgents.
Mr Obama said the US was prepared for "targeted and precise military action, if and when" required, but added that US troops would not fight in Iraq.
He insisted there was "no military solution" and urged the Shia-led Iraqi government to be "inclusive".
US Secretary of State Kerry is expected to travel to Iraq soon to press for a more representative cabinet.
Iraq has asked the US for air strikes against the Sunni militants - spearheaded by the jihadist Islamic State of Iraq and the Levant (ISIS) - who have made major territorial gains in the past 10 days.
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