US President George W. Bush's policies have harmed Washington's global image and the country needs "wise" leaders to regain its lost credibility, Iran's Foreign Ministry spokesman said Saturday. Mohammad Ali Hosseini said Bush's policies have isolated him both internationally and at home, citing the Republican Party's losses in Congress last November as proof of Bush's declining popularity. "Instability in Iraq is the result of wrong policies and incorrect decisions of the US government. This illogical approach of the US government is even disliked by the American people," Iran's official news agency, IRNA, quoted Hosseini as saying. "The United States needs wise leaders to regain its lost image," Hosseini was quoted as saying. Hosseini's comments were in response to Bush, who on Thursday called Teheran a "destabilizing influence in the Middle East." The US leader also warned Iran to stop exporting sophisticated explosive devices into Iraq that the US alleges are used in attacks on American troops or "there will be consequences." Hosseini did not address the US allegations but said Iran will continue to support the process of government building in Iraq and cooperate with Prime Minister Nouri al-Maliki's government.