U.S. President Barack Obama said it is time to "turn the page" as he announced the formal end of the U.S. combat role in Iraq.

“Tonight, I am announcing that the American combat mission in Iraq has ended," Obama said in a live televised address Tuesday night from the Oval Office. "Operation Iraqi Freedom is over, and the Iraqi people now have lead responsibility for the security of their country."

U.S. President Barack Obama speaks from the Oval Office at the White House about the end of the U.S. combat role in Iraq. (APTN/Associated Press)

Obama said that ending the war is in the interest of both the U.S and Iraq, adding that the U.S. has "paid a huge price to put the future of Iraq in the hands of its people."

"We have persevered because of a belief we share with the Iraqi people – a belief that out of the ashes of war, a new beginning could be born in this cradle of civilization," Obama said.

"Through this remarkable chapter in the history of the United States and Iraq, we have met our responsibilities. Now, it's time to turn the page.”

Obama said the Iraq war has been a contentious issue at home, and that "here, too, it's time to turn the page."

He said he spoke with former U.S. president George W. Bush Tuesday afternoon. Obama said that while he and Bush disagreed about the war from its outset, no one can doubt Bush's support for the troops, love of his country and commitment to its security.

Hundreds of U.S. bases have already been turned over to the Iraq military and most U.S. soldiers are home.

About 50,000 soldiers remain in Iraq, serving in a support role. That is down from a peak of almost 170,000 during the military buildup in 2007.

Iraqi soldiers take part in a training course at a military base south of Baghdad on Monday. (Saad Shalash/Reuters)The remaining soldiers are focused on training Iraq's armed forces. U.S. soldiers are no longer allowed to go on combat mission unless asked and accompanied by Iraqi soldiers.

Obama said that all U.S. troops will be out of Iraq by the end of next year.

The president said as the war in Iraq winds down, the U.S. must tackle challenges at home.

"Our most urgent task is to restore our economy," he said.

Former national security adviser Michael O'Hanlon said a sigh of relief about Iraq came a couple of years ago, when the Bush era's surge started to bring more stability to the country.

"Americans have moved on," said O'Hanlon. "We've got bigger problems."

O'Hanlon said Obama leads the U.S. out of Iraq leaving a more sophisticated political culture behind, as alliances are no longer drawn exclusively along sectarian lines.

However, O'Hanlon worries that six months after a parliamentary election, there is no government in place.

"The wounds of sectarian war are still healing. So any kind of political dynamic that leads to suspicion of renewed sectarian competition or potential for violence is very, very destructive," he said.

U.S. Vice-President Joe Biden is in Iraq to mark the end of the U.S. combat role, and he was appealing to Iraqi leaders, including Prime Minister Nouri al-Maliki, to break the political deadlock.

The remaining U.S. troops in Iraq are due to leave by the end of 2011, and O'Hanlon doesn't doubt that they will see combat before then.

Iraqis concerned

While the U.S. is shifting its attention to the situation in Afghanistan, some Iraqis are worried about the future.

"They should go, but the security situation is too fragile for the Americans to withdraw now," said Mohammed Hussein Abbas, a Shia resident of the town of Hillah, south of Baghdad. "They should wait for the government to be formed and then withdraw."

Other Iraqis are concerned the U.S. departure will leave a power vacuum that will be filled by Iraq's neighbours, namely Iran. Both countries have Shia majorities.

"The U.S. withdrawal will put Iraq into the lap of Iran," said Baghdad engineer Ali Mussa, 46.