Obama poured effusive praise on NATO ally Turkey, citing its prominent role in tackling a clutch of conflicts and crises as he welcomed Turkish Prime Minister Recep Tayyip Erdogan to the White House.

As Western powers threaten sanctions against Iran, Obama noted that the international community was working to try to resolve the nuclear showdown and ensure that Iran abides by international norms and atomic rules.

"I believe that Turkey can be an important player in trying to move Iran in that direction," Obama said in the Oval Office.

The Ankara government has created concern in Washington and Western capitals with its defense of Tehran's nuclear program.

Erdogan has played down concerns that Iran could be developing an atomic bomb and slammed Western powers for turning a blind eye to Israel, widely considered the Middle East's sole if undeclared nuclear power.

Meeting reporters with Obama in the Oval Office, Erdogan said that Turkey backed a peaceful solution to the nuclear issue.

"We as Turkey stand ready to do whatever we can to ensure a diplomatic solution to the nuclear issue in our region," Erdogan said, adding that Ankara also wanted to help mediate peace between Israel and the Palestinians and Syria.

"This is not the time to make enemies, it's the time to make friends. And I believe that we must move hand in hand towards a bright future," Erdogan said.

Ankara insists the row with Iran should be resolved peacefully and has sought to help mediate a settlement.

Western powers such as Britain, Germany and France have warned of new sanctions following the latest confrontation with Iran, with the United States saying time is running out for Tehran.

Russia, however has warned against escalating the row.

Both China and Russia are veto-wielding members of the UN Security Council and their backing would be key to imposing new penalties on Iran.

The US president also praised Turkey for its role in Afghanistan where it has 1,700 troops, less than a week after unveiling a 30,000 strong surge of troops designed to pave a US exit from the war.

But Erdogan made clear before he left home that he would not be adding to Turkey's troop presence in Afghanistan, despite a call by Obama on NATO allies for more resources.

Obama also praised Erdogan for taking some "courageous steps" on ending Turkey's bitter dispute with Armenia, and said he was highly optimistic that US economic ties with Turkey would quickly improve.

"We discussed our joint role in helping Iraq achieve the kind of independence and prosperity that I think has been advanced as a consequence of the election law finally being passed over the weekend," Obama said.

"Turkey is a great country, it is growing in influence around the world and I am pleased that America can call Turkey a friend."

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