While U.S. President Obama stresses American combat troops would not be returning to Iraq, he says the U.S. is prepared to take targeted military actions there if they’d help fight a growing threat from extremists militants.

He says the U.S. has increased its intelligence, surveillance and reconnaissance operations in the country to better understand the threats to Baghdad.

Obama adds America is ready to send up to 300 military advisers as it sets up joint operations centres in the capital and northern Iraq.

The president says it’s going to be difficult for the current government to resolve the crisis unless it’s more inclusive.

He stopped short of calling for Prime Minister Nouri al-Maliki to resign, saying whoever is prime minister must make sure all groups feel they can advance their interest through the political process.