Under mounting pressure from the United States, Iraq's Shiite, Sunni and Kurdish leaders have agreed to resolve major disputes that have long stalled the war-torn country's national reconciliation process.

A statement released late Sunday by Iraqi President Jalal Talabani's office said the leaders agreed to hold provincial elections and ease restrictions on the participation of former members of Saddam Hussein's Baath party in the government.

The agreement was reached by Prime Minister Nuri al-Maliki, a Shiite; Talabani, a Kurd; Sunni Vice President Tareq al-Hashemi; Shiite Vice President Adel Abdel Mahdi; and Massud Barzani, president of the northern Kurdish enclave.

"After a series of meetings by political leaders in the circumstances that our country is passing through, they have decided to make serious efforts to find solutions to overcome the political and security crisis in Iraq," the statement said.

"The leaders agreed to hold provincial elections and to continue dialogue over other disputed issues such as constitutional reforms and the oil law," it added.

The statement came out under intensified pressure from the United States which has insisted that provincial elections and passage of the oil law are among the required to achieve progress and reconciliation in Iraq.

The oil law aims to fairly distribute oil revenues among all the provinces which has not been approved by the parliament.

The leaders also agreed to accept the Reconciliation and Accountability Law "to guarantee justice and transparency to all."

The release of the statement was welcomed by the White House, which appraised the pledges of the Iraqi leaders as "an important symbol" of their readiness to work toward reconciliation.

"We congratulate Iraq's leaders on the important agreement reached today in Baghdad. Today's agreement is an important symbol of their commitment to work together for the benefit of all Iraqis," the White House said in a statement from the Crawford, Texas ranch where President George W. Bush is on vacation.

In two weeks, top U.S. officials are expected to present their report on Iraq to the U.S. Congress.