This is a partial transcript from "Your World with Neil Cavuto," June 14, 2006, that was edited for clarity.

NEIL CAVUTO, HOST: Well, Iran wants to help us on Iraq. That was the news-breaking story our own editorial senior vice president, John Moody, was able to glean from top Iranian officials with whom he was chatting.

Reaction now from former Israeli Prime Minister Benjamin Netanyahu.

What do you make of this?

BENJAMIN NETANYAHU, FORMER ISRAELI PRIME MINISTER: You ever heard of the word "spin"? This is Iranian spin.

Yes, I'm sure they'll be happy to help you with Iraq, as long as you don't prevent them from acquiring nuclear weapons. Once they have nuclear weapons, they'll be able to bring down Iraq, bring down Jordan, bring down the Arabian Peninsula, and get their hands on the world's oil supplies.

CAVUTO: So, this is just a Trojan horse deal?

NETANYAHU: This — if it's true. You know, I'm not — I'm not even sure it was offered. You never know with these guys. But Iran's objective right now is, one, to get their hands on nuclear weapons. That's all they want.

CAVUTO: OK. So, how do you deal with them when they are threatening to continue?

NETANYAHU: I think this is a very, very problematic regime. I mean, this is a regime that denies that the Holocaust ever happened, but they promise a new one against the remnants of the Jewish people collected in Israel.

This is a regime that supports terrorism worldwide and Islamic militancy worldwide. And this is a regime that has an ideology that sees you, the U.S., as the great Satan. We're merely your derivative. We're the little Satan. Europe, by the way, for them is a middle-sized Satan, but Europe doesn't always get it.

But I think that...

CAVUTO: Well, you're a pretty big Satan, too. You're not like a secondary Satan.

NETANYAHU: We're...

CAVUTO: You're actually the Satan they want...

NETANYAHU: No. They actually call us the little Satan. And they say, because we're small, we can be obliterated with one bomb – with one nuclear bomb.

These are statements that are these are statements made by Rafsanjani, the former Iranian leader, and they were made by Khamenei, and now they are made by Ahmadinejad, the current ruler — leader of the — Iran.

So, it's not one man. It's an ideology. It's a regime.

CAVUTO: So, negotiation is a complete waste of time?

NETANYAHU: So, I think that the U.S. will seek to apply diplomatic means to get them or sanctions to get them to back off, if they could muster the international support.

But my concern is that, whereas, surprisingly, some European countries understand the urgency of preventing Iran from acquiring nuclear weapons, other powers, principally China and Russia, don't see that urgency. And, without their support, the U.N. Security Council is not going to act.

CAVUTO: But your opponents, notwithstanding Iran and all that, there has been division among them, I mean, Hamas and Fatah fighting with each other now. In Iraq, Zarqawi is gone.

NETANYAHU: Right. Right, a great achievement.

CAVUTO: So, major gains being scored?

NETANYAHU: Zarqawi's a great achievement. I think that's important. I think it's operationally important. I think it's symbolically important, as well for the U.S. war against terror.

You're right. There is a battle amidst the Palestinians. The Hamas, which are basically Iranian proxies, very extreme, they want to wipe Israel off the map. They want to continue Iran's bidding.

They are being challenged by moderates. And I don't think we should help those — the extremists. I think we should...

CAVUTO: Would you help the moderates?

NETANYAHU: Well...

CAVUTO: Would Israeli money go to help Abbas?

NETANYAHU: Well, the first thing — the first thing you should help them with is not to help the extremists, the Hamas. And giving land gratis to Hamas is going to make them very powerful. This is why...

CAVUTO: So, their division is the best news you've heard in a long time?

NETANYAHU: Yes. And don't strengthen the extremists with concessions to the extremists, number one.

CAVUTO: OK.

NETANYAHU: Number two, if you want the moderates in the Arab and the Islamic world to win, don't let Iran acquire a nuclear weapon.

CAVUTO: But, bottom line, minister, to follow — end with this, you do not trust this so-called overture from Iran to the president that, look, we can help you with Iraq?

NETANYAHU: I think it would be a grave mistake to believe them. They want to — not to help you. They want to hurt you, and they will.

CAVUTO: OK.

Mr. Prime Minister, always good seeing you.

NETANYAHU: Thank you.

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