Iran is ready for "any kind of cooperation" with Iraq's government to restore peace, Khamenei said in a meeting yesterday with visiting Iraqi President Jalal Talabani, according to the official Islamic Republic News Agency.

The U.S. "is against the expansion of Iran-Iraq ties and is seeking to damage this relationship," said Khamenei, the highest authority in the Islamic Republic. "We should resist this."

Iran shares a border with Iraq to the west and both have Shiite Muslim majorities. The two states fought an eight-year war in the 1980s, though they have increased political and economic ties since the fall of President Saddam Hussein's Sunni Muslim- led regime after the 2003 U.S.-led invasion of Iraq.

The U.S. accuses Iran of promoting attacks on U.S. forces in Iraq by arming both Shiites and Sunnis, groups that have been rivals in sectarian clashes. The U.S. also says Iran is backing terrorist groups in the Middle East and seeking to build nuclear weapons.

Iran accuses the U.S. of trying to dominate the Middle East by force and of sowing discord between Muslims. Iran also says its nuclear program is aimed at producing power, not bombs.

"Intelligence services of the U.S. and the Zionist regime and their allies are the main elements behind insecurity in Iraq," said Khamanei, referring to Israel.

Talabani, who's on a two-day trip to Tehran, last visited the Iranian capital in late November. In May, the U.S. and Iranian ambassadors to Iraq held talks at Talabani's request to try bringing stability to Iraq.