Israel and the United States are determined to prevent Iran from obtaining nuclear weapons and do not rule out any option to that end, Israel's defence minister said on Sunday.

"Our two countries clearly believe that a nuclear Iran is neither conceivable nor acceptable and we are determined to prevent Iran from getting nuclear weapons," Defence Minister Ehud Barak told public radio, two days after meeting US President Barack Obama.

"We reiterated the fact that we must not take any option off the table," Barak said.

Speaking ahead of the meeting, Obama said Washington had "worked painstakingly" with its allies to halt Iran's nuclear programme, which Israel and Western governments suspect is cover for a drive for an atomic weapon.

Obama said recently-imposed Western sanctions were the "most comprehensive, the hardest-hitting" ever faced by Iran and vowed that the international community would "keep up the pressure."

He also vowed to "take no options off the table."

Last week, Israeli chief of staff Lieutenant General Benny Gantz announced the formation of a new military command that will be in charge of strategic "depth" operations outside the borders of Israel and the Palestinian territories.

Media reports said the Depth Corps was likely to be engaged at some level in disrupting Iran's nuclear programme.

Last month, the UN nuclear watchdog, the International Atomic Energy Agency, said it had credible information that Iran was carrying out "activities relevant to the development of a nuclear explosive device."

Iran insists its nuclear programme is for peaceful medical and power generation purposes only.

Israel is widely suspected to have the Middle East's sole if undeclared nuclear arsenal.

Iran prepared for 'worst' on sanctions: Salehi
Tehran (AFP) Dec 17, 2011 - Iran has prepared for "the worst case scenario" to circumvent toughened new Western sanctions targeting its central bank and oil exports, Foreign Minister Ali Akbar Salehi said in an interview published on Saturday.

"We are not really worried," Salehi told the official IRNA news agency. "Appropriate responses have been prepared for the worst case scenario, and we have devised a road map" to circumvent new sanctions.

The remarks came after the US Congress approved a tough new proposal to impose an embargo against Iran's oil exports and to cut off its central bank from the world financial system, effectively seeking its collapse.

The European Union is considering similar measures.

Salehi did not elaborate how the "road map" would deal with the fresh Western economic sanctions, which are in response to Tehran's refusal to curb its controversial nuclear programme.

But he said Iran has managed to "circumvent" Western and UN sanctions since the 1979 Islamic revolution, while acknowledging that "sanctions have their effect."

Iran is already subject to four sets of UN sanctions -- designed to force it to give up uranium enrichment -- along with severe additional US and EU sanctions.

The West alleges Tehran is seeking to acquire a weapons capability under the guise of its nuclear research programme. Iran denies any such ambition and says its work is only for civil energy and medical purposes.

In recent weeks, Iranian officials have insisted the country was ready to face new sanctions against the oil sector and central bank.

"Iran does not fear a European embargo on its oil," said Oil Minister Rostam Qasemi in Vienna this week.

Iran is the second-largest oil producer in the OPEC cartel.

Qasemi also predicted that such a move would destabilise the market and be detrimental to the West.

For his part, Economy Minister Shamseddin Hosseini said Tehran was "fully prepared" to deal with sanctions targeting its central bank.

However, they have also conceded, in veiled terms, that sanctions in place since summer 2010 have had an impact on Iran's economy, including its supply of foreign currency and ability to invest in key oil and gas sectors.

Qasemi acknowledged last month that there were either no "investments, or those which were available came with difficulties, because of aggressive actions" of Western countries targeting Iran's energy sector.

A number of projects have been delayed or suspended after being declared non-priority.

Earlier in the week, central bank chief Mahmoud Bahmani suggested Iran must be managed "as if under siege" -- referring to an early episode of Islam when the prophet and his followers were subject to an economic blockade by their opponents for three years.

Bahmani did not elaborate on the measures he thinks Iran should take to reduce the impact of a possible embargo against the central bank.