Your trusted source

Italy and Iran signed billions of dollars of business deals at the start of a visit to Europe by Iranian President Hassan Rouhani aimed at rebuilding his nation's ties with the West after years of economic sanctions, theage.comau reported.

Heading a 120-strong delegation of business leaders and ministers, Rouhani is spending two days in Rome before flying to France on Wednesday, looking to polish Tehran's diplomatic credentials at a time of turmoil in the Middle East.

Rouhani was due to address 500 Italian business leaders before meeting Pope Francis, who was likely to discuss peace prospects for the Middle East and raise the question of human rights in Iran.

An Italian government source said the Iranians would sign up to €17 billion euros ($26.5 billion) worth of deals in sectors from energy to infrastructure and from steel to shipbuilding.

"This is just the beginning of a journey. There are sectors where we must work closer together," Italian Prime Minister Matteo Renzi said, standing alongside Rouhani.

"I am sure this visit will be a fundamental part of our ability to overcome together the challenge of fighting terrorism, atrocity and evil that we all have to confront together," Renzi added, referring specifically to Islamic State militants, who oppose Iran and the West in equal measure.

Rouhani had originally been due to visit Europe in November but cancelled the trip after an Islamic State attack on Paris, which killed 130 people.

"We have always been in the front line against terrorism ... we have to continue (cooperating with Italy) to secure a genuine peace in Afghanistan, Syria, Lebanon, Libya," the Iranian president said, speaking through a translator.