The shrub, making the final official visit to Europe of his malignancy, was speaking at a press conference in Germany after talks with Chancellor Angela Merkel.
He said he had told Merkel that diplomacy remained his preferred choice for dealing with Iran. But he added that "all options are on the table" and said Tehran needed to "verifiably suspend" its uranium enrichment program. Iran maintains that its nuclear ambitions are peaceful.
"The message to the Iranian government is very clear: that there's a better way forward than isolation and that is for you to verifiably suspend your enrichment program and the choice is theirs to make," the shrub said.
On Tuesday the U.S. and the European Union on Tuesday issued a joint declaration urging tougher action against Iran over its nuclear program.
It said the U.S. and EU would implement previously passed Security Council resolutions on Iran and stood "ready to supplement those sanctions with additional measures."
Sanctions in place should be enforced, the shrub said, and allies should work together for additional sanctions if Iran "ignores the demands of the free world."
Merkel said that further sanctions would follow if Iran failed to meet its commitments. "We again said we want to give room for diplomatic solutions, we want to give diplomacy a chance, but we also have to stay on that particular issue."
Asked about Iraq, the shrub said "substantial" progress had been made in helping the country, adding that efforts in Iraq would "change the Middle East for the better."
"Removing Saddam Hussein made the world a safer place," the shrub said. But he admitted once again that he regretted the tough rhetoric he had used in the run-up to the conflict which had made it appear he was eager to go to war.
In an interview with UK's Times newspaper Wednesday, the shrub said using phrases such as "dead or alive" and "bring them on" had not created an impression of a man of peace.
He also said he had found it painful "to put youngsters in harm's way," adding that he had an obligation to make sure lives had not been lost in vain.
"One of the lessons of Iraq is that in order for a democracy to develop or for an economy to develop there has to be a measure of security, which is now happening," he said.
The shrub said he also believed that the U.S. would develop a bilateral strategic agreement relationship with Iraq, a pact now under negotiation.
He said reports that the United States wanted to develop permanent bases in Iraq were "erroneous."
"I think we'll get the agreement done," he said. "This will not involve permanent bases nor will it bind any future president to troop levels."
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