"Iran is racing forward to produce nuclear weapons in brazen defiance of the international community, and the international community must decide if it is serious about neutralising this threat to Israel, the region and the entire world," Netanyahu told a gathering of EU ambassadors in Jerusalem.

"I believe that what is required right now is tough action from the international community. This means not moderate sanctions or watered-down sanctions; this means crippling sanctions and these sanctions must be applied right now."

On Tuesday, Iran declared it had started the process of enriching uranium to 20 percent purity, defying world powers who have warned of new sanctions unless the Islamic republic halts enrichment.

Netanyahu also urged the diplomats to condemn a statement by Iranian supreme leader Ayatollah Ali Khamenei, who claimed on Sunday that the destruction of Israel was "imminent."

"In the last two days the brutal regime in Tehran has made more outrageous statements, including the implicit call for the extermination of my country," Netanyahu said.

"Israel expects all responsible governments, including all those represented here, to forcefully condemn these outrageous statements. But I think what is required is a lot more than words," he said.

Netanyahu's urging for sanctions marked the latest such call from Israel, which considers the Islamic Republic to be its top enemy.

"The coming month is decisive," Silvan Shalom, vice premier, told public radio earlier on Tuesday. "It is time the international community impose tough sanctions against Iran, even if Russia and China do not go along."

He was referring to two of the five permanent members of the UN Security Council, which have previously expressed opposition to Iran sanctions.

On Monday, however, Moscow suggested that a new set of sanctions could be discussed following Iran's announcement that it was stepping up its uranium enrichment.

While widely considered the Middle East's sole if undeclared nuclear power, Israel, along with the West, suspects Iran of trying to develop atomic weapons under the guise of its nuclear programme. Tehran denies these claims.

Israel has refused to rule out military force against Iran's nuclear programme.

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