Iran reportedly purchased $1 billion in arms for Syria, including missile systems.

The report in the Ha'aretz newspaper Friday was unsourced but arises out of this week's meeting in Israel between Prime Minister Ehud Olmert and Angela Merkel, the German chancellor. Germany closely monitors the Iranian arms trade.

Iran is underwriting Syria's arms purchases in the hopes of dissuading Syria from launching peace talks with Israel, Ha'aretz said.

Iran was a focus of the Merkel-Olmert talks, and the leaders discussed calling an international conference to promote the isolation of the Islamic Republic until it ends its suspected nuclear weapons program.

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