BAGHDAD, Jan. 28 — Iran’s ambassador to Baghdad outlined an ambitious plan on Sunday to greatly expand its economic and military ties with Iraq — including an Iranian national bank branch in the heart of the capital — just as the Bush administration has been warning the Iranians to stop meddling in Iraqi affairs.

Iran’s plan, as outlined by the ambassador, carries the potential to bring Iran into further conflict here with the United States, which has detained a number of Iranian operatives in recent weeks and says it has proof of Iranian complicity in attacks on American and Iraqi forces.[NYTimes]