The attacking midfielder has no doubt that the Catalan giants can win the upcoming Clasico and, on the back of Spain beating Italy, has high hopes for the World Cup
The Catalans sit one point shy of the Blancos with two more La Liga games before they clash, meaning Carlo Ancelotti's men could move four points clear if results beforehand are matched, or Gerardo Martino's charges could leapfrog their rivals.
Iniesta has no doubt that a victory in the capital can be achieved and, ahead of a clash with Valladolid on Saturday, thinks that La Liga, the Copa del Rey and the Champions League are well within their reach this season.
"Obviously we can win," Iniesta said at a promotional event. "We have already done so in the past.
"But we have two La Liga games beforehand and we cannot forget them. If we want to compete until the end of the season, we have to beat Madrid.
"Expectations are high in all three competitions. We have plenty of options in the squad, and the desire and enthusiasm to get titles is high."
Iniesta, who scored the winning goal in the World Cup four years ago, played a part in Spain's 1-0 friendly victory over Italy on Wednesday and hopes la Roja can be victorious once again in Brazil.
"It leaves a good feeling for the World Cup," he added. "We are confident that we can do something important.
"Winning the World Cup is amazing and scoring a goal in the World Cup is a unique feeling."