WASHINGTON, Dec 6 (Reuters) - The Democratic co-chairman of the Iraq Study Group said on Wednesday that America's ability to resolve the crisis in Iraq is narrowing and the costs could rise to more than $1 trillion.

At a news conference to release the bipartisan group's long-awaited report, former Rep. Lee Hamilton said, "The current approach is not working and the ability of the United States to influence events is diminishing."

"No course of action in Iraq (is) guaranteed to stop a slide toward chaos. Yet, in our view, not all options have been exhausted."

Hamilton also said the high-level panel concluded the U.S. costs "could well rise over a $1 trillion."

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