Sanctions on Iran 'a real possibility'

"A free world cannot allow Iran to have a nuclear weapon; not just the United States, but those of us who value freedom," Bush told CBS television in an interview.

"And that is why our strategy is to present and hold together a united front, to say to the Iranians: Your designs to have a nuclear weapon or your desire to have the capability of making a nuclear weapon is unacceptable."

Asked whether sanctions would work against Iran, Bush replied: "I have said that is certainly a real possibility."

Asked whether he had reviewed plans for possible military action, Bush said: "I think it's best I just leave it that all options should be on the table, and the last option is the military option.

"We've got to work hard to exhaust all diplomacy. And that's what the country is seeing happen," said the president.

Washington accuses Iran of using its civilian nuclear programme to hid a quest for atomic weapons. Tehran denies the charge.

Bush has endorsed diplomatic efforts led by Britain, France and Germany to resolve the impasse, as well as thrown his weight behind a Russian compromise to keep some sensitive nuclear activities on its own soil.

Meanwhile, the US Senate voted unanimously Friday to condemn Iran's nuclear programme and to support referring Iran to the UN Security Council for allegedly violating nuclear nonproliferation obligations.

The resolution, adopted without debate, condemned "the many failures of the government of Iran to comply faithfully with its nuclear nonproliferation obligations" and its commitments to suspend uranium enrichment and reprocessing.

The Senate also urged the International Atomic Energy Agency, which meets February 2, "to order that Iran's noncompliance with its safeguards obligations be reported to the United Nations Security Council."

The senators further called on UN Security Council members, particularly Russia and China, to quickly "consider any report of Irans noncompliance in fulfilment of the mandate of the Security Council to respond to and deal with situations bearing on the maintenance of international peace and security."

Russia and China have expressed reservations about having the Security Council take action on Iran, appearing hesitant to have the council become locked into any path that could force sanctions to be applied on Tehran.

The White House on Friday accused Iran of playing "games" with the international community by not accepting a Russian compromise aimed at allaying US concerns that Tehran seeks nuclear weapons.