US President George W Bush says he wants to pursue diplomacy to deal with Iran's controversial nuclear programme, but "all options are on the table".Mr Bush and German Chancellor Angela Merkel said further sanctions against Iran were possible.
"The first choice is to solve it diplomatically and that's exactly what we're doing," Mr Bush said.
He was speaking after talks in Germany, on the latest leg of what is likely to be his last tour of Europe.
His talks with Chancellor Merkel also covered Afghanistan, the Middle East peace process and the global issues of climate change and the cost of energy and food.
At their joint news conference in Meseberg, Mrs Merkel said: "We can't exclude further sanctions" against Iran, but they would have to be agreed in the UN Security Council.
"The last round [of sanctions] has to be put into effect," she added.
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President Bush issues warning to Iran
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