"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.