David Miliband, the Foreign Secretary, has urged Persian Gulf states to use their economic and political clout to confront Iran on its nuclear ambitions.

Speaking in Abu Dhabi, Mr Miliband warned the prospect of a nuclear-armed Iran posed "the most immediate threat" to the region, accusing Tehran of having "a long history of secrecy about its nuclear programme."

His comments provoked swift reaction from Tehran, which charged Mr Miliband of holding Zionist ties.

"We have recently seen comments by Miliband about Iran being a threat in the region. There is no doubt about his strong ties with the Zionists," said Hassan Ghashghavi, Iran's foreign ministry spokesman.

The exchange highlights fresh tensions in the wake of the International Atomic Energy Agency last week reporting a deadlock into its investigation into Iran's nuclear programme.

However, it was unclear how the United Arab Emirates (UAE) – a staunch ally of the West – would react to Mr Miliband's request that it should adopt a tougher stance against its powerful neighbour.

Leaders of Gulf states have grown increasingly wary of Iran's growing influence and see their stability as intimately linked to Western powers such as Britain and the US

Iran and the UAE have also been locked in an escalating territorial dispute over three tiny Persian Gulf islands - Abu Mousa and the Greater and Lesser Tunbs - over which Iran controls, but the UAE claims sovereignty.

However, the UAE's economy remains intimately linked to Iran, its biggest trading partner. Nearly half a million Iranians live in the Emirates, with about 10,000 Iranian companies operating in its commercial capital of Dubai.

When President Ahmadinejad of Iran visited the UAE last year, local rulers received him with much fanfare, underscoring intentions to maintain respectful relations.

Analysts here said the UAE will have a difficult time reconciling Mr Miliband's call for tougher sanctions with its economic ties to Iran.

Nasser Hashempour, head of the Dubai-based Iranian Business Council, said Mr Miliband's comments were inappropriate.

"I am sorry for such a speech. Iran and the UAE have been trading partners for centuries and their relationship shouldn't be subject to third party interference," Mr Hashempour said.

Mr Miliband said Iran faced a clear choice. "It can cooperate and halt is enrichment or continue on its current path toward the future of confrontation and isolation," he said.

Sheikh Abdullah Bin Zayed Al Nahyan, the UAE's foreign minister, did not comment publicly on Mr Miliband's speech, delivered at a conference on nuclear energy.

According to the state news agency WAM, private discussions between the two leaders focused on the Israeli-Palestinian peace process and the global economic crisis, with both men calling for fresh measures to restore stability to the markets.

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