An oil tanker loads gas in Assaluyeh seaport at the Persian Gulf, 1,400 km (870 miles) south of Tehran, Iran May 27, 2006. Iran will not rule out using oil as a weapon if the United States resorts to military action against the Islamic Republic over its nuclear program, an Iranian oil official said in remarks published on Tuesday. REUTERS/Morteza Nikoubazl

WASHINGTON (Reuters) - U.S. President George W. Bush reiterated on Tuesday that all options were on the table in dealing with Iran’s nuclear challenge.

At the start of a meeting with Israeli Prime Minister Ehud Olmert, Bush was asked if military action remained an option for dealing with Iran.

“My position has not changed. All options are on the table. I would hope that we could solve this diplomatically,” he replied.

Bush said it was important that Iran faced “consequences” such as sanctions and other economic measures for defying the international community over its nuclear program. “There’s a price to be paid,” Bush said.

The United States accuses Iran of seeking to build atomic bombs, a charge Tehran denies.