An Iran-backed Iraqi militia suspected of a drone strike in Jordan that killed three US soldiers says it has suspended operations against US forces.
Kataib Hezbollah, which is part of an umbrella group that claimed Sunday’s attack, said this was “to prevent embarrassment of the Iraqi government”.
The US defence department said: “Actions speak louder than words.”
US President Joe Biden meanwhile said he had decided how to respond to the attack but did not elaborate.
Iran warned it would retaliate against any attack on its “interests”.
Earlier, it denied US and British accusations that it was involved in the attack.
The US has hinted at an armed response that might come in several waves.
Kataib Hezbollah Secretary-General Abu Hussein al-Hamidawi said in a statement on Tuesday: “As we announce the suspension of military and security operations against the occupation forces – in order to prevent embarrassment of the Iraqi government – we will continue to defend our people in Gaza in other ways.”
Dozens more soldiers were injured in the attack on Tower 22, which was struck while US forces were asleep in their bunks.
The US has blamed Iran-backed groups and has not yet conclusively determined that Kataib Hezbollah was behind it.
However, a Pentagon spokeswoman said it carried “the footprints” of the group.
Meanwhile, the US is taking steps to bolster security at Tower 22, where some 350 US soldiers are stationed in a mission focused on defeating the Islamic State (IS) group.
Mr Biden has been weighing a number of retaliatory options, including strikes on Iran-aligned militia bases and commanders.
The US could also target senior commanders of Iran’s Islamic Revolution Guard Corps (IRGC) in Iraq or Syria.