Iraq's prime minster says his government tried to stop the U.S. from labelling Iran's Revolutionary Guard Corps as a "foreign terrorist organization," saying the designation could have negative consequences for Iraq and the Middle East.

Adel Abdul-Mahdi says Iraq will continue to invest in its relationship with both the U.S. and Iran despite the White House designation Monday. The Iraqi premier says his government spoke to the U.S. administration about the label.

Speaking at his weekly news conference Tuesday, Abdul-Mahdi said that Iraq as Iran's neighbor to the west cannot afford to be the site of conflict between rival powers.

Some 5,200 U.S. troops are stationed in Iraq, after the Iraqi parliament invited Washington to deploy forces to fight the Islamic State group in 2014.