US President Mr George Bush and European leaders tonight urged Iran to keep its commitment not to produce nuclear weapons.
They agreed that the United States and its allies would take tougher steps to combat terrorism.
"Both the United States and the European Union are threatened by global terrorism and we are determined to defeat it," Mr Bush said in the White House after a summit with EU leaders.
The US led war in Iraq has divided the Bush administration from many traditional European allies.
European Commission President Mr Romano Prodi said: "The differences are shrinking."
"Emerging from a closed-door meeting, Bush said the parties had agreed on measures to speed extradition of terrorists and cut down funding to terrorist organisations. They also agreed to help curb trade in biological and chemical weapons.
AP