The United States and the European Union told Iran on Tuesday they were ready to impose more sanctions over its nuclear enrichment programme.
But President George W. Bush acknowledged the limits of U.S. influence over Tehran and, in the twilight of his presidency, appeared resigned to leaving the standoff to his successor.
"I leave behind a multilateral framework to work on this issue," Bush said after a U.S.-EU summit at a Slovenian castle.
"A group of countries can send a clear message to the Iranians, and that is: We're going to continue to isolate you ... we'll find new sanctions if need be, if you continue to deny the just demands of the free world, which is to give up your enrichment programme," he said.
He stopped short of repeating the U.S. position that all options, including military action, remain open. "Now is the time for there to be strong diplomacy," Bush said.
A joint communique after his final summit with the 27-nation EU said both sides were ready to take additional measures on top of three rounds of United Nations sanctions -- an implicit recognition that tougher Security Council action might be difficult due to Russian and Chinese resistance.
Bush met Slovenian leaders, who hold the EU's rotating presidency, as well as European Commission President Jose Manuel Barroso and EU foreign policy chief Javier Solana, who has led efforts to get Iran to scrap its enrichment programme.
The president later arrived in Germany where he will hold talks with Chancellor Angela Merkel on Iran, climate change and oil prices at Meseberg, north of Berlin, before heading to Rome, France and Britain as part of a week-long European tour.
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Solana is due to travel to Iran at the weekend to present a new offer by major powers of incentives for it to suspend the programme but he has played down prospects of a breakthrough.
"Iran with a nuclear weapon would be incredibly dangerous for world peace," Bush said.
All agree Iran should not be allowed to acquire nuclear weapons. Tehran insists its programme is for civilian purposes.
