The cowboy keeps 'em guessing:
TEHRAN (Reuters) - President Bush refused on Tuesday to rule out nuclear strikes against Iran if diplomacy fails to curb the Islamic Republic's atomic ambitions.
Bush said in Washington he would discuss Iran's nuclear activities with China's President Hu Jintao this week and avoided ruling out nuclear retaliation if diplomatic efforts fail.
Asked if options included planning for a nuclear strike, Bush replied: "All options are on the table. We want to solve this issue diplomatically and we're working hard to do so."
The United States, which already enforces its own sweeping sanctions on Iran, wants the Security Council to be ready to take strong diplomatic action, including so-called targeted measures such as a freeze on assets and visa curbs.
Washington says it does not want to embargo Iran's oil and gas industries to avoid creating hardship for the Iranian people. Iran is the world's fourth-biggest oil exporter.
China, which sent an envoy to Iran on Friday to try to defuse the standoff, repeated a call for a negotiated solution.
"We hope all sides will maintain restraint and flexibility," Chinese Foreign Ministry spokesman Qin Gang said in Beijing.
Russia restated its opposition to punitive action. "We are convinced that neither the sanctions route nor the use of force route will lead to a solution of this problem," Foreign Ministry spokesman Mikhail Kamynin said, Itar-Tass news agency reported.
Iranian President Mahmoud Ahmadinejad, speaking at an annual military parade, said the army was ready to defend the nation.
"It will cut off the hands of any aggressors and will make any aggressor regret it," Ahmadinejad declared.
In Kuwait, former Iranian President Akbar Hashemi Rafsanjani said he doubted the Americans would use force. "It is unlikely that they would enter into such a perilous situation from which they cannot come out."
Iran says it will not drop its right to enrich uranium for peaceful use but that it will work with the IAEA.
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