"President Obama has signaled his intention to support tough and direct diplomacy with Iran but if Iran does not comply with the UNSC and the IAEA mandate, there must be consequences," Clinton said.

She was referring to resolutions passed by the UN Security Council and the UN's nuclear watchdog, the IAEA, calling on Iran to halt its suspect nuclear activities.

As Clinton welcomed German Foreign Minister Frank-Walter Steinmeier for talks here, she added that the United States and Germany must cooperate in getting Iran to comply with its international obligations.

Iran said on Tuesday it had launched its first domestically manufactured satellite into orbit, raising fresh concerns among world powers already at odds with Tehran over its nuclear drive.

The launch comes at time when Iran is ignoring repeated UN Security Council demands to freeze sensitive nuclear work.

The West suspects Iran of secretly trying to build an atomic bomb and fears the technology used to launch a space rocket could be diverted into development of long-range ballistic missiles capable of carrying nuclear warheads.

Iran vehemently denies the charges, saying its nuclear program is for peaceful energy purposes only and that it has the right to the technology already in the hands of many other nations including archfoe the United States.

US will use "all elements" of its power with Iran
The United States will use "all elements of our national power" to deal with Iran, White House spokesman Robert Gibbs said Tuesday after Iran said it had launched a satellite into orbit.

"This action does not convince us that Iran is acting responsibly to advance stability or security in the region," Gibbs told reporters, asked if the satellite launch undermined Obama's desire to open talks with Iran.

"All of this continues to underscore that our administration will use all elements of our national power to deal with Iran and to help it be a responsible member of the international community," he said.

"Efforts to develop missile delivery capability, efforts to continue on an illicit nuclear program, or threats that Iran makes toward Israel and its sponsorship of terror are of acute concern to this administration.

"The president is clear that he wants Iran to be a responsible member of the world community."

Iranian President Mahmoud Ahmedinajad announced his country had launched its first domestically made satellite into orbit, declaring the Islamic republic had "officially achieved a presence in space."

State Department acting spokesman Robert Wood expressed concern after another US official, speaking on the condition of anonymity, said Tehran appeared to have put the satellite into low Earth orbit.

"Developing a space launch vehicle that ... could put a satellite into orbit could possibly lead to development of a ballistic missile system," Wood told reporters.

"That's of great concern to us," he said.

US must leave all options open on Iran: Israel's Barak
Any future talks the United States holds with Iran on its nuclear drive must be limited in time and not exclude military action, Israeli Defence Minister Ehud Barak said on Tuesday.

"We must reach strategic understanding with the United States on the essence of Iran's nuclear programme and make sure that even if they choose a diplomatic track to halt it, the talks must be limited to a short time and then harsh sanctions and readiness to take action," Barak said in a speech.

"Limited time; harsh sanctions and all the options are on the table," he said.

Israel, which goes to the polls next week, and the United States claim that the Islamic republic's nuclear bid is aimed at developing an atomic bomb, but Tehran says it is meant for peaceful use only.

US President Barack Obama declared he would break away from his predecessor George W. Bush's tough stance towards Iran and has said he was willing to hold direct talks with Tehran to defuse the crisis.

But the White House said last week that while Obama prefers diplomacy with Iran, he is still preserving "all his options," refusing to rule out military strikes despite promises of a new rapprochement.

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