Chancellor Angela Merkel's spokesman Steffen Seibert told reporters all parties needed to "exercise restraint and to turn away from a logic of escalation and towards a logic of dialogue".

The overnight attack on bases in Al-Asad and Arbil was the latest escalation amid growing tensions in the region since a US drone strike killed Iranian general Qassem Soleimani last Friday.

Germany temporarily withdrew 32 of its soldiers from a camp close to Baghdad on Tuesday and Defence Minister Annegret Kramp-Karrenbauer began drawing up plans for a "possible partial withdrawal" from Arbil.

Kramp-Karrenbauer condemned the attacks "in the strongest terms".

"It is now crucial that we do not allow this spiral to continue," said the defence minister, adding that "it is now primarily up to the Iranians to refrain from further escalation".

Kramp-Karrenbauer said Germany had been in contact with the US department of defence throughout the night and that "all channels" of communication would be opened in a bid to prevent further escalation.

She added that she would seek a meeting of the coalition's 13 framework nations to discuss the situation in the region.

Separately, Foreign Minister Heiko Maas urged Iran to "refrain from all steps that could lead to further escalation". He also called on all parties to exercise restraint.

Kramp-Karrenbauer, who is also the leader of Merkel's ruling conservative party, said the missile attacks could see further withdrawals of German troops in Iraq.