Condoleezza Rice today warned Iran to live up to its international obligations on its nuclear programme, human rights and relations with its neighbours, or face escalating international sanctions.

But the new US Secretary of State said that a military attack on Iran was not on America's agenda at the moment.

Speaking at the Foreign Office in London after talks with Tony Blair, Ms Rice said that three top European nations - Britain, France and Germany - had given Iran an opportunity to show responsibility in curbing its nuclear activities.

"They should take it," she said. Iran had to stop using its civilian nuclear programme as a smokescreen, she added.

There remained a range of diplomatic devices to use in dealing with Iran which would be fully explored, Ms Rice said, indicating that an attack on the country was not part of US thinking at this stage.

Asked whether President Bush supported regime change in Iran, she said the country engaged in activities that were destabilising for the region and frustrated the Arab-Israeli peace process. The regime should have "transparent relationships" with its neighbours, Iraq and Afghanistan, Ms Rice added.

The Secretary of State, making her first foreign trip since taking over from Colin Powell, said Iraqis and Afghanis who lived in Iran voting in their own free elections must have an effect on the Iranian people.

Another question focused on Saudi Arabia and whether the US was happy with progress towards democracy in the oil-rich kingdom. Ms Rice said that President Bush had put it best when he said "we expect more of our friends".

Governments would move at their own pace, but added: "We expect there should be reform in all countries of the Middle East."

Mr Straw predicted there would be significant change in Saudi Arabia in the near future. He said: "We can feel the winds of change blowing through the Arab world."

Ms Rice praised her hosts, saying the US had no better friend and ally than Britain. She is due to return to London next month for a Middle East peace conference hosted by Tony Blair.

"We hope to make significant strides towards securing a lasting peace for the people of the Palestinian territories and for the Israeli people," she said.

Mr Straw said: "We want to use that meeting to help the Palestinians build the institutions which they will need to build and govern a viable state. There is a great opportunity now for progress on this issue which I believe is the most difficult and pressing challenge facing the whole international community."

Ms Rice's week-long tour will take in Paris and Berlin in a mission to improve relations with foreign capitals, as a prelude to President George Bush's visit to Europe later this month. He will be in Brussels on February 22 for a joint EU-US summit.

President Bush is thought to be keen to build bridges with European allies after disagreements over the war in Iraq during his first term in office.

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