Eight months since American troops withdrew from Iraq, Baghdad has signalled a readiness to bolster military ties with the US, America’s top general said ahead of a visit to the country even as Iraq denied reports that it was helping Iran skirt sanctions by smuggling oil and secretly moving cash.

General Martin Dempsey, chairman of the US Joint Chiefs of Staff, is due to fly to Iraq this week after talks in Afghanistan.

Speaking to reporters late on Sunday aboard his plane en route to Afghanistan, Dempsey said the US and Israel have different interpretations of the same intelligence reports on Iran’s nuclear programme.

He said Israel viewed the threat posed by Teheran’s atomic ambitions with more urgency, as a nuclear-armed Iran could endanger Israel’s very existence.

Dempsey said he conferred with his Israeli counterpart Benny Gantz on a regular, “bi-weekly” basis.

“We compare intelligence, we discuss regional implications. And we’ve admitted to each other that our clocks are turning at different rates,” he said.

“They are living with an existential concern that we are not living with.”

Dempsey acknowledged Iran was trying to expand its influence in Iraq but said the Baghdad leadership wanted to build up relations with the American military.

“I believe they’ve concluded that they missed a window of opportunity to establish a more normal relationship with us,” said Dempsey, referring to discussions with Iraqi defence chiefs. “I don’t mean to say we’re coming back to Iraq,” he said.

“I think they recognise their capabilities may require yet more additional development and I think they’re reaching out to us to see if we can help them with that.”

The Iraqi defence minister and military chief have both inquired about staging drills with the US military, organising training for Iraqi officers and other “security cooperation”, he said.

His visit coincides with growing concern in US that Iran may be funnelling supplies to the regime in Syria through Iraq.

Dempsey did not comment directly on the reports but said: “I will of course express our concern about Iranian influence in Syria.”

The general also said he could not confirm reports that Teheran is circumventing economic sanctions by illegally operating in Iraqi financial markets, gaining access to much-needed US currency.

In Baghdad, Iraq insisted that its trade with Iran was above board. Ali Mussawi, spokesman for Iraqi Prime Minister Nuri al-Maliki, said that Baghdad’s trade and dealings with Teheran were below “the permitted level” for neighbouring countries, and dismissed claims Iraq was selling oil on Iran’s behalf as a “big lie”.