The radical Lebanese Shiite terrorist organization Hezbollah has been moving fighters to Iraq in recent months to battle American troops, according to a report in the Israeli newspaper Haaretz.

The report attributes the information to U.S. intelligence sources who say the transfer of fighters has been carried out through Syria, following an Iranian initiative. The transit through Syrian territory is permitted by Damascus along its porous border with Iraq.

The Hezbollah fighters in Iraq are part of a broader force of pro-Iranian militants operating in Iraq to destabilize the country and undermine U.S.-led coalition forces and the new Iraqi government.

Iran is eager to see the Hezbollah fighters establish operations in Iraq before a new regime is officially installed in Baghdad June 30.

In its interim report, the congressional bipartisan commission of inquiry into the events of 9-11 states that the cooperation between the Hezbollah and Al-Qaida is extensive.

U.S. officials also say Syria has not responded to American demands to seal its border with Iraq against the transit of "foreign fighters."

According to U.S. sources, neither a letter to President Bashar Assad from Secretary of State Colin Powell nor the subsequent American decision to impose sanctions on Syria had the desired effect on Damascus.