Bush tells Iran, Syria how they can join Iraq talks

Story Highlights

• Bush: "It's bad in Iraq"
• Bush: "Having an international group is an interesting idea"
• Blair: Iraq report offers "strong way forward"
• Israel balks at study group report's linking Iraq with Israel-Palestinian conflict

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WASHINGTON (CNN) -- After talks with his top Iraq war ally President Bush on Thursday indicated that Iran and Syria might be included in regional talks about Iraq, if they meet certain conditions.

Speaking a day after a bipartisan report called on the White House to change course in its war strategy, Bush acknowledged during a news conference with British Prime Minister Tony Blair that, "It's bad in Iraq."

Blair said the report "offers a strong way forward" toward success "because the consequences of failure are severe." Bush said victory in Iraq is important to security in the Middle East, Britain, the United States and "the civilized world." (Watch Bush detail his meeting with Blair on their "daunting" task )

The Iraq Study Group report also called on the United States to hold talks on the war with Iraq's neighbors, including Syria and Iran, a nation which has not enjoyed diplomatic relations with Washington in the nearly three decades after the Iranian revolution.

"Having an international group is an interesting idea," Bush said.

"We have made it clear to the Iranians that there is a possible change in U.S. policy, a policy that's been in place for 27 years," said Bush. "And that is that, if they would like to engage the United States, that they've got to verifiably suspend their [nuclear] enrichment program."

The Bush administration suspects Iran of using its nuclear program to develop weapons. Tehran insists its program is for peaceful purposes only.

As for Syria, Bush said Damascus should "stop destabilizing" Lebanon's government.

"If they want to sit down at the table with the United States, it's easy," Bush said. "Just make some decisions that'll lead to peace, not to conflict."

Earlier Thursday, Iraq announced details of two upcoming regional conferences to address the nation's violence and instability. (Full story)

Sectarian violence

Bush also appeared to put less emphasis on the importance of al Qaeda as an enemy and more emphasis on ending the sectarian violence.

"The strategy now is how to make sure that we've got the security situation in place such that the Iraqi government's capable of dealing with the sectarian violence, as well as the political and economic strategies as well," Bush said.

"We'll continue after al Qaeda. Al Qaeda will not have safe haven in Iraq," Bush said.

During opening statements, Bush again blamed continued violence in Iraq on a struggle between extremists and moderates.

Bush said a key part of the report was "how do we empower [Iraqi Prime Minister Nuri] al-Maliki to do the hard work necessary to achieve the objective."

"We'll support the democratic government of al-Maliki as he makes difficult decisions," Bush said.

Before the news conference, Bush and Blair held their talks in the Oval Office after an unscheduled breakfast together.

Blair and Bush led the push to invade Iraq in 2003, which eventually toppled the regime of Saddam Hussein and opened the door to free elections. Widespread sectarian violence that followed has claimed thousands of lives and nearly 3,000 U.S. military personnel have died in the war.

Both leaders acknowledged the impact of the report and Bush said he would decide his next move after pending reports on the Iraq war from the National Security Council and the Joint Chiefs of Staff. (Watch how Bush's approach may change )

"We're hoping to have all that pulled together so that maybe by the end of the year, the president can announce a new way forward," White House spokesman Tony Snow told "Larry King Live" on Wednesday.

Calling the situation "grave and deteriorating," the report urges that military brigades be pulled back by early 2008 and the U.S. troops evolve into a support role for the Iraqi army. (Full story)

Whatever the next moves by the allies, Blair said, "We've got to be very, very clear about this: It will require everybody to face up to their responsibilities; us, of course, because we are principal actors in this, but also the Iraqi government. They've got to be prepared to make the moves necessary for governance, for capability, reconciliation and for help in security. And we will be there to support them."

The report also calls for a "renewed and sustained commitment by the United States to a comprehensive Arab-Israeli peace." (Watch report's co-chairs explain why linking Iraq to Israeli-Arab conflict adds "legitimacy" )

On Thursday, Israeli Prime Minister Ehud Olmert balked at the link drawn between the Israel-Palestinian conflict and the war in Iraq. (Full story)

CNN's Elaine Quijano contributed to this report.

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