Mahmoud Ahmadinejad has accused the US of seeking to seeking to hide its failures in Iraq, saying that claims that Iran is arming Iraqi insurgents to target US forces are an attempt by Washington to cover its own mistakes.

In a rare interview with the US programme ABC News, the Iranian President sidestepped accusations that his Government was supplying arms to insurgents in Iraq, insisting instead that his country was against conflict of any sort and calling for the withdrawal of US and other foreign forces from Iraq as the only way to ensure peace.

Asked if Iran was sending weapons into Iraq to kill Americans, Mr Ahmadinejad replied: “We shy away from any kind of conflict and any kind of bloodshed.

“I think that Americans have made a mistake in Iraq and unfortunately are losing, and this is a shame for Americans of course and that's why they are trying to point their fingers to other people.

“We do not want the presence of armed forces in Iraq, foreign armed forces in Iraq. We would like to have the strengthening of Iraq and the stability of the Iraq government… But we think that the US is following another policy trying to hide its defeats and failures and that's why is pointing its fingers to others. This is not a solution to the problem.”

The comments came after the US military claimed that 170 soldiers had been killed in Iraq by sophisticated armour-piercing weapons supplied by Iranian agents acting on behalf of the highest levels of the Tehran government.

Senior officials in Baghdad also claimed yesterday that five Iranians, arrested last month in a controversial raid in Irbil, were members of the Iranian Revolutionary Guard Corps. They said that the group, all carrying false papers, had been caught flushing documents down lavatories and shaving their heads to disguise their appearance. One allegedly had “explosive residue” on his hands.

Several senior Democrats have greeted the claims with scepticism, urging the Bush Administration to move cautiously before accusing Iran of fomenting a campaign of violence against US troops in Iraq.

In the interview, Mr Ahmadinejad said that peace would return to Iraq only when US and other foreign forces left the country, saying: “We are opposed to any conflict and also the presence of foreign forces in Iraq, and that's why we are opposed to the Americans. We tell them leave the country and no other foreigners should be in Iraq, then you see that you have peace.”

He insisted that instability in Iraq was not to Iran’s advantage and that the two countries were “historical friends”.

“Our position for Iraq is very clear: We are asking for peace, we are asking for security, and we will be sad to see people get killed, no matter who they are,” he said.

Asked whether he feared an attack by the US, the President dismissed the possibility as “very low”, but gave warning: “Our nation has made it clear that anyone who wants to attack our country will be severely punished."

Times Recommends

• It’s only Brits who don’t appreciate me, says Blair
• Party’s over for Greek graspers
• White House tightens security for Xmas marathon