DAR AL HARB - U.S.A./ISRAEL: WE WILL REVIEW SANCTIONS AGAINST IRAN @ YEAR END

U.S. to Israel: will assess Iran sanctions at yr-end

The United States told Israel it plans to tighten economic sanctions on Iran and assess their impact at year-end, a top Israeli official said on Saturday in comments that appeared to play down military options for now.

Washington has stepped up commercial pressure on Tehran since the United Nations in December imposed sanctions over Iran's refusal to suspend activities the West fears are aimed at making atomic weapons.

Iran says its nuclear programme has purely civilian, not military, aims.

"Sanctions are the best way to act against Iran," Deputy Israeli Prime Minister Shaul Mofaz told Israel Radio after talks in Washington with top Bush administration officials.

"Regarding a timeline,... we decided that the end of 2007 will be the point of assessing the effectiveness of the sanctions and the amount of influence they are having on the Iranians," Mofaz said.

He did not say what other options, if any, would be considered at that point.

U.S. President George W. Bush has made clear Washington is sticking to a diplomatic course, Secretary of State Condoleezza Rice said earlier this month.

Mofaz said the United States and Israel agreed that additional sanctions would be imposed on Iran in two stages. The first stage would be stepped up U.N. Security Council sanctions.

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