As the spotlight turns to what action the U.S. will take to quell growing violence in Iraq, there is talk about whether any steps will involve collaboration with Iran.
According to media reports Shiite Iran is so alarmed by the progress made by Sunni insurgents in Iraq that it may be willing to cooperate with Washington to return stability to its neighbor.
Islamist militants have taken control of large parts of Iraq including Mosul, the country's second biggest city, over the past week, stoking fears of renewed instability in the oil-rich Middle East.
""[Direct talks between Iran and the U.S.] are something we have predicted at Stratfor for some time. It is necessary because ultimately, American, Iranian, Turkish and Kurdish interests coincide – and that is to prevent jihadists to have a free rein over territory in Syria and Iraq," said Kamran Bokhari, vice president of Middle Eastern and South Asian Affairs at Stratfor, a geopolitical intelligence firm.
"This is not the first time that Iran and U.S. would have collaborated against jihadists. There was massive collaboration just after 9-11. So if they collaborated when they were enemies, imagine what could happen when we're on path to rapprochement on the nuclear issue," he added.
Iran has been aggrieved for some time by what it sees as U.S. efforts to sideline it in the Middle East. Relations between the countries, however, have improved recently especially on the contentious nuclear issue.
"The U.S. and Iran both have an interest in stability [in Iraq]," Kevin Logan, chief U.S. economist at HSBC told CNBC. "Both countries want the region stable and to keep the oil flowing so if they have that unity of interest perhaps they'll find a way to co-operate."
Still, some experts warned against closer U.S.-Iran ties to restore stability to Iraq.