Iran is "looking for a stable Iraq," he said. "They want an Iraq that is not fragmented. But the difference would be that they don't want an Iraq that is militarily strong. They want an Iraqi government that is elected democratically, which means a Shia Iraq."
But Sunni-dominated governments in Egypt, Jordan and especially Saudi Arabia have pushed the U.S. to expand Sunni representation in Iraq's leadership as a way of countering Tehran. Some experts fear that a nuclear-armed Iran would spark a regional arms race.
John D. Negroponte, former director of national intelligence, told a House committee last month that Iran had extended its "shadow in the region" since the U.S. ousted hostile regimes on its borders: the Taliban in Afghanistan and Hussein's government in Baghdad.
Iran also has increased regional political leverage, he said, because of increased oil revenues, electoral victories by Hamas in the Palestinian territories and Hezbollah's "perceived recent success in fighting Israel" in Lebanon.
Iran and Syria since have resupplied arms to Hezbollah, including stocks of long-range missiles that could reach deep into Israel, U.S. officials contend.
Washington lists both Hamas and Hezbollah as terrorist organizations.
The administration has also become alarmed by Iran's increasing efforts to support Hamas after the group's victory in Palestinian elections in January 2006. That worry lies behind an $86-million U.S. plan to build up Palestinian Authority President Mahmoud Abbas' Presidential Guard and national security forces, rivals to Hamas.
Confrontation exploited
Iran's president, Mahmoud Ahmadinejad, has successfully exploited the growing confrontation with Washington to gain much needed political support at home. Nationalist sentiments run deep in Iran and the claim that Tehran has the same right to nuclear power as other nations has become a rallying cry that undermines the government's domestic critics.
"None of us can accept the suspension of these activities because people consider this our legal right," said Akbar Alami, an independent lawmaker. "All the political parties agree with this. We cannot stop."
Ahmadinejad's fiery rhetoric and defiance of the West also have burnished his credentials as a populist leader in other Islamic nations. That has raised alarms in Sunni governments around the region that Iran's brand of militant political Islam, potentially backed by the prestige of being a nuclear power, is on the march.
"The Americans are worried about enriched uranium, and the Arabs are worried about enriched Shiism," said Mamoun Fandy, senior fellow for Persian Gulf security at the London-based International Institute for Strategic Studies. Iran's growing power, he said, "threatens every existing political order in the region."
bob.drogin@latimes.com
Drogin reported from Vienna and Murphy from London. Times staff writers Paul Richter and Peter Spiegel in Washington contributed to this report.