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"It's very important for the world to unite to say to the Iranians if you choose to continue to move forward you will be isolated," Bush said, when asked whether he favored sanctions against Tehran.
"One source of isolation would be economic," Bush told reporters after meeting with Israeli Prime Minister Ehud Olmert. "There has to be a consequence for their intransigence."
Bush called Iran "a threat to world peace" and repeated his stance that Tehran must abandon its nuclear ambitions. Olmert also expressed Israel's concerns about what it sees as an Iranian threat to its security.
Bush's comments come as some critics are calling for Washington to open dialogue with Iran over how to calm the situation in neighboring Iraq.
Olmert shared Bush's concerns, saying ahead of the talks that "this is not an issue of Israel only. This is a moral issue of the whole world."
The meeting was the second Olmert had with Bush since the prime minister took over for the ailing Ariel Sharon. Palestinian gestures toward peacemaking with Israel was also a key topic on their agenda.
Tehran's goal is to "ultimately wipe Israel off the map," Olmert said on NBC's "Today" show. "The whole world has to join forces in order to stop it. This is a problem of every country. I know that President Bush is fully aware of that."
Iranian officials say their goal is to create nuclear energy. MSNBC News Services