MUSCAT, May 15 (Reuters) Iranian President Mahmoud Ahmadinejad today called on Gulf Arab neighbours to send experts to inspect his country's nuclear power plant, in an apparent effort to ease fears over Tehran's nuclear ambitions.

The Bushehr facility, being built on Iran's Gulf coast, has been a source of concern for Gulf Arab states because of its proximity.

''Iran has invited scientists, experts and economists from neighbouring countries to visit the Bushehr facility and observe things closely'' Ahmadinejad said at a news conference in the Omani capital.

The United States accuses Iran of wanting to produce nuclear weapons and has sought tougher UN sanctions against Tehran.

Iran says it wants only to generate electricity to allow more oil exports.

Ahmadinejad on Monday threatened ''severe'' retaliation if the United States attacked his country, which is locked in a standoff with the West over its nuclear programme.

Tension between the United States and Iran has raised fears of a possible military confrontation that could hit Gulf economies and threaten oil exports.

Washington has said it is committed to diplomacy but will not rule out the ''military option''.

Ahmadinejad said Iran had agreed to talk to the United States about Iraq to help the Iraqi people. The White House said on Sunday that U.S. and Iranian officials would meet in the next few weeks in Baghdad about security in Iraq.

US Secretary of State Condoleezza Rice said there was agreement on a need to stop a flow of arms and fighters across borders to insurgents in Iraq.

The UAE, which with its Gulf Arab neighbours has expressed concern about Tehran's nuclear plans, on Sunday voiced support for a moderate approach to Iran's crisis with the West.

REUTERS SLD KP1903