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The director told the Cannes press conference for his Iraq-set film Route Irish that he had wanted to tackle the war on screen for a long time.
Loach said of the war: "It was a monstrous crime against the Iraqi people, it was illegal. We have tolerated torture, there's been massive corruption.
"It was a war fought for greed - naked greed - and the challenge was to find a story and characters that would reveal this conflict."
He added: "The violence which has been unleashed by the war is just endless. Endless. Vengeance seeks vengeance and so on.
"The US will not allow an independent state to develop. There will always be a measure of control and the question is how long is a piece of string that they allow for the Iraqis to be nominally independent."
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