JERUSALEM (REUTERS) - The United States is not looking for a military solution in Iraq, Treasury Secretary Jack Lew said on Wednesday.

Speaking at a forum in Jerusalem, Lew said the United States was concerned about the "grave situation" in Iraq.

"As the President (Barack Obama) makes a decision on next steps, let me be clear that this is not primarily a military challenge," Lew said.

"While it is evident that Iraq needs significantly more help to break the momentum of extremist groups and bolster the capabilities of Iraqi security forces, there is no military solution that will solve Iraq's problems."