British Prime Minister Tony Blair wrapped up a Middle East tour Wednesday with a stark speech warning the world faces a monumental struggle between moderates and extremists - and labeling Iran the main obstacle to hopes for peace.

Speaking in the United Arab Emirates, Blair underlined what has been the theme of his Middle East tour: moderate leaders must be empowered against extremists.

"There is a monumental struggle going on worldwide between those who believe in democracy and moderation, and forces of reaction and extremism," Blair told business leaders in Dubai.

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"We have to wake up. These forces of extremism - based on a warped and
wrongheaded misinterpretation of Islam - aren't fighting a conventional war. But they are fighting one, against us - and us is not just the West, still less simply America and its allies," Blair said.

"We must therefore mobilize our alliance of moderation in the region and outside of it to defeat the extremists. We must recognize the strategic threat the government of Iran poses, not its people, not possibly all of its ruling elements, but those presently in charge of its policy," he added.

Blair has repeated that message throughout his trip - in Turkey, Egypt, Iraq, Israel, the Palestinian territories and the United Arab Emirates.

Blair said there were "elements of the government of Iran, openly supporting terrorism in Iraq to stop a fledgling democratic process; trying to turn out a democratic government in Lebanon; flaunting the international community's desire for peace in Palestine - at the same time as denying the Holocaust and trying to acquire nuclear weapons capability; and yet a large part of world opinion is frankly almost indifferent. It would be bizarre if it weren't deadly serious."

"We must recognize the strategic challenge the government of Iran poses,"
Blair added. "Not its people, possibly not all its ruling elements, but those presently in charge of its policy."

Blair's language differed slightly from excerpts of the speech released in advance by Blair's office, which called Iran a "strategic threat."

Blair's spokesman dismissed suggestions his comments on Iran were designed to pit the region's Sunni Muslims against Shi'ite Iran, saying the prime minister worked with all faiths.

The prime minister - making a push for peace in the Middle East before he leaves office next year - will say the struggle between "moderates and extremists" will impact the security of the wider world.

"It is not too late but it is urgent," he said.

Aides say Blair made progress on the Middle East trip in exploring ways to end a deadlock between Palestinians and Israelis.

In his speech Blair called for an "early meeting" between Palestinian
President Mahmoud Abbas and Prime Minister Ehud Olmert, the relaunch of the peace process and support to bolster Abbas' authority in his struggle
with the Islamic militant group Hamas. But he announced no new commitments or agreements on that front.

Late on Tuesday, Blair told the Dubai-based Al Arabiya television that Syria should help to restore stability in Lebanon, Iraq and Palestinian Territories, but did not rule out peace in the region without its support.

"I agree that peace would be easier in the Middle East with Syria, but we cannot allow Syria to decide for the region," he said. "We will engage with Syria only if they agree on conditions for this partnership," he added but did not elaborate.