The video, titled "A Message To America," also showed images of another U.S. journalist, Steven Sotloff, whose life Islamic State said depended on how the United States acts in Iraq.
The gruesome video presented President Barack Obama with bleak options that could define America’s involvement in Iraq and the public reaction to it, potentially dragging him further into a conflict he built much of his presidency on ending.
Obama held back from making a public statement about the beheading until the video could be formally authenticated.
"If genuine, we are appalled by the brutal murder of an innocent American journalist and we express our deepest condolences to his family and friends," White House National Security Council spokeswoman Caitlin Hayden said in a statement.
Other political leaders were swift to react.
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