The U.S. military is now accusing Iran of smuggling surface-to-air missiles and other advanced weaponry into the country of Iraq for use against American troops.

Rear Admiral Mark Fox, a military spokesman, said that U.S. troops continue to find Iranian-supplied weaponry in Iraq, including the Misagh 1 (a portable surface-to-air missle), RPG-29 rocket-propelled grenades, 240 mm rockets and roadside bombs known as EFPs (explosively formed penetrators).

Iran has denied U.S. allegations that they are smuggling weapons to Shiite militias in Iraq. Iranian President Mahmoud Ahmadinejad repeated the denial on an interview with CBS' "60 Minutes", which aired on Sunday.

"We don't need to do that. We are very much opposed to war and insecurity. The insecurity in Iraq is detrimental to our interests." said Ahmadinejad.

Iraqi officials are now worried about the worsening tensions between Iran and the United States.