US President George W. Bush branded the Islamic Republic "the world's leading state sponsor of terrorism," citing its backing of Hamas, Hezbollah, Palestinian Islamic Jihad and Shiite fighters killing US troops in Iraq.
"And Iran's active pursuit of technology that could lead to nuclear weapons threatens to put a region already known for instability and violence under the shadow of a nuclear holocaust," he told the American Legion veterans group.
"Iran's actions threaten the security of nations everywhere, and the United States is rallying friends and allies to isolate Iran's regime, to impose economic sanctions. We will confront this danger before it is too late," he said.
Bush, whose speech was billed a defense of US efforts in Iraq, said Tehran must starve Shiite fighters in Iraq of weapons, equipment and training whether or not Iran's leaders know about such operations and have given their blessing.
"Either way, they cannot escape responsibility for aiding attacks against coalition forces and the murder of innocent Iraqis," he said, as the White House warned in a statement that Iran must act "at once."
Shortly before Bush spoke, Iranian President Mahmoud Ahmadinejad said Iran and neighboring countries were ready to fill the "power vacuum" emerging in the Middle East as US power in Iraq wanes.
"You (the United States) cannot preserve your power over Iraq with a few tanks, artillery and weapons. Today, you are prisoners of your own quagmire. You have no choice but to accept the rights of the Iraqi people," he said.
"I can tell you there will be a power vacuum in the region. We are ready with other regional countries, such as Saudi Arabia, and the people of Iraq to fill this vacuum."
The United States has expressed its discomfort over the increasingly strong relationship between Iran and Baghdad, disapproving of comments made by Prime Minister Nuri al-Maliki on a recent visit to Tehran.
Some Western analysts have argued that Iran has been the chief beneficiary of the US invasion that toppled Saddam Hussein in 2003, helping Tehran to boost its influence in the region.
Ahmadinejad also dismissed the chance of any US attack on Iran over its nuclear drive, saying a warning by his new French counterpart Nicolas Sarkozy only showed his inexperience.
The United States accuses Iran -- OPEC's number two oil producer and owner of the second largest proven gas reserves in the world -- of seeking to make nuclear weapons under the guise of a civilian energy drive.
Iran insists that the drive is entirely peaceful and that its growing population will need nuclear power as fossil fuels start to run dry.
Tehran's refusal to suspend uranium enrichment -- a sensitive process that can be used both to make nuclear fuel and nuclear weapons -- has already seen it slapped with two sets of UN sanctions.
Bush also strongly defended US-led efforts in Iraq and especially his decision in January to send another 30,000 US troops there, describing the unpopular conflict as the central front against Iran and Al-Qaeda.
"The most important and immediate way to counter the ambitions of Al-Qaeda and Iran and other forces of instability and terror is to win the fight in Iraq," he declared.
Bush said there were "unmistakable signs" that the US troop "surge" was paying off with lower levels of violence and local efforts at quieting bloody sectarian conflict and downplayed the failure by the government in Baghdad to post concrete progress on national reconciliation.
"Iraq's leaders aren't perfect, but they were elected by their people," he said. "And leaders in Washington need to look for ways to help our Iraqi allies succeed, not excuses for abandoning them."
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The Nazis, Fascists and Communists were political parties before they became enemies of liberty and mass murderers.
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