The Reds welcome the Seagulls to Anfield this weekend in what should be a thrilling clash between two teams in fine form.
Brighton have scored 14 more league goals than Liverpool after the opening seven games and sit four points ahead of Iraola's side in third.
Liverpool have won four of their last five games, including their last league clash against Brentford and their Champions League game against Villarreal, as the side get back to their old selves.
Brighton won't be easy
Asked about Sunday's opponents, Iraola admitted the game may be similar to the Villarreal clash, a game where his side had to fight back from 2-0 down in the first half.
"They are doing incredibly well and deserve all the praise they are getting. Well coached, very good in every phase, one of the best teams with good quality. We have to be at our very best. I see my team in a good place.
"Probably not too different a game against Villarreal; they control the phases, good technically, so we will see this. Maybe not a 0-0 where nothing happens; both teams will try to control the game."
Youth is key for Liverpool
Against Villarreal, Liverpool gave Rio Ngumoha and Trey Nyoni starts whilst Iraola brought on James McConnell in the second half. Youth development has been imperative for Iraola, who says the youngsters are like a tight-knit family.
"They are all supporting each other, they praise each other, and when they see someone start in the Champions League or Premier League, they feel it, and they feel they are close to being there. That is good for them and the ones in the second team. Koumas learning from Isak.
"They have to use all the help from the players, the coaches. They have to take it in and learn from that, and we have some experienced players, so they look at what they are doing in training."
Gravenberch at right back?
Lastly, although Iraola did not provide an update on Dominik Szoboszlai and the chances of him featuring against Brighton, he did imply Ryan Gravenberch could return after his suspension.
"I think if you asked me where is his position he suits him best, I think he is an eight, but he can do a job at six, and he won the league there. He can do a job at right-back like the other day.
"At 10, he can do a job. He played as a centre-back at certain moments, so he is very valuable because he is versatile. At this time, you need help in other positions, and he can help. We have lost (Jeremy) Frimpong and (Conor) Bradley."
The Dutchman could start at right back due to injuries to Bradley, Frimpong and Szoboszlai.