Binyamin Netanyahu described Iran as the greatest threat that Israel has ever faced and failed to mention stalled talks with the Palestinians after he was asked to be the country's new Prime Minister today.

In a speech made outside the residence of President Shimon Peres, the Likud leader said that protecting Israel would be his greatest responsibility as leader, and condemned "formidable" challenges posed by the Islamic Republic.

However, he did not once mention the stalled Israeli-Palestinian peace process or a two-state solution throughout his address, omissions that will cause concern within an Obama administration determined to advance the peace process.

The Likud leader held a brief press conference alongside President Peres after he was appointed to form a coalition government, despite only finishing a close second in Israel's election.

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"Iran is seeking to obtain a nuclear weapon and constitutes the gravest threat to our existence since the war of independence," Mr Netanyahu said.

Referring to the Iranian-backed Hezbollah movement in south Lebanon, Mr Netanyahu said: "The terrorist forces of Iran threaten us from the north. For decades, Israel has not faced such formidable challenges.

"The responsibility we face is to achieve security for our country, peace with our neighbours and unity among us."

He spoke after the UN announced yesterday that Iran had enriched sufficient uranium to amass a nuclear bomb – a third more than previously thought. President Mahmoud Ahmadinejad of Iran has caused alarm in the West over its apparent threats to Israel and support for radical Islamist groups Hamas and Hezbollah.

Mr Netanyahu's selection to form a coalition comes despite a narrow defeat in Israel's general election by Tzipi Livni of the centrist Kadima party, who had pledged to advance the peace process with the Palestinians.

After taking soundings from all political parties, Mr Peres judged the Likud leader to have a significantly better chance of building a viable coalition after he won the backing of Avigdor Lieberman's ultra-nationalist Yisrel Beitenu party, which finished third in the national poll.

President Peres said today that, overall, 65 out of 120 seats in Israel's Parliament, the Knesset, backed Mr Netanyahu.

However, concerns arose within minutes of his appointment as to how viable any coalition led by Mr Netanyahu would be, with both Kadima and Ehud Barak, the Labour leader, appearing to choose going into opposition rather than joining his coalition.

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