(BBC) - President George W Bush and visiting German Chancellor Angela Merkel say they will continue to seek a diplomatic solution to Iran's nuclear programme.
The comments came in a news conference at Mr Bush's Texas ranch, held during Mrs Merkel's two-day trip there.
Mrs Merkel said more sanctions might be required to force Iran to give up its nuclear aims - and Germany would study its business ties with the country.
Mrs Merkel has become one of President Bush's closest European colleagues.
Her visit follows that by French President Nicolas Sarkozy - and correspondents say Mr Bush is undertaking a charm offensive to woo the two influential European leaders.