US:US president George Bush and German chancellor Angela Merkel have agreed that a third round of UN sanctions against Iran will be unavoidable if Iran does not halt its nuclear programme.
After giving Dr Merkel a tour of his Texas ranch, Mr Bush was at pains not to repeat in front of his German visitor his recent warning that the stand-off with Iran posed a danger of "world war three".
"I think we can resolve the question diplomatically," he said, knowing that Dr Merkel is under pressure from her Social Democrat (SPD) coalition partners and SPD foreign minister to pursue a UN-based solution to the Iran question.
"What the Iranian regime must understand," he added, "is that we will continue to work together to solve this problem diplomatically, which means they will continue to be isolated."
In an apparent acknowledgment of her host's moderate tone, Dr Merkel promised in return to talk to industrial leaders at home about halting trade with Iran, as demanded by Washington. Germany is Iran's leading European trade partner, with ties worth more than €5 billion annually.
Dr Merkel said it would be clear if further action against Iran was needed after the publication of a report into Iran's nuclear activities, expected on November 19th, by EU foreign policy chief Javier Solana and the International Atomic Energy Agency.
Iran says it is entitled to develop a nuclear programme for energy production; western leaders fear the real goal is the production of nuclear weapons. "If the reports remain unsatisfactory, we need to think about further possible sanctions," said Dr Merkel.
Dr Merkel and Mr Bush still disagree on climate change. Weeks before the UN climate conference in Bali, Mr Bush continues to resist the idea of mandatory limits on emissions. He told Dr Merkel he favoured voluntary measures.