The neighbors are at odds over the war in Syria: Iran is a key supporter of President Bashar al-Assad and Turkey is his most outspoken critic.
The easing of Western sanctions on Iran over its nuclear program means the two neighbors can easily exceed their previous trade target of $30 billion annually, Davutoglu also said in comments broadcast live by Turkey's NTV news channel.
By: Reuters (Istanbul).
Reporting: Ayla Jean Yackley.
Editing: Mark Trevelyan.
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