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Mr Straw accepted that international pressure on Iran appeared to be having no direct - at least "in terms of rhetoric".
"It is essential if Iran really wants to come out of the cold and into the fold of the international community that it ends it support for organisations they say are freedom fighters which frankly are terrorist organisations," he said.
He said they must end their support for Hezbollah guerrillas’ activities in Lebanon, and for Hamas’ terrorist activities. He added that there was a suggestion that Iran was supporting another Palestinian terror group, Islamic Jihad.
Asked what Mr Straw's comments meant in relation to an earlier pledge that military action against Iran was "out of the question", Tony Blair said today that it was crucial for the Government to present a united front.
He told the Commons at Prime Minister's Questions: "Iran is now in front of the Security Council and we are pursing this by peaceful and diplomatic means. I do hope (Mr Ahmadinejad) recognises that given what Iran is doing in exporting terrorism around the region, in what it's doing in human rights... it's important that we say they have to come back into compliance with their international obligations.
"It's important that they understand we are united in determining they are not able to continue to flout international regulations."
Last night, in his annual State of the Nation address, Mr Bush appeared to incite the Iranian public to overthrow the ruling Islamist regime.
Praising democratic progress of Egypt, Saudi Arabia and Palestine, he said: "The same is true of Iran, a nation now held hostage by a small clerical elite that is isolating and repressing its people.
"The regime in that country sponsors terrorists in the Palestinian territories and in Lebanon -- and that must come to an end. The Iranian government is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons. America will continue to rally the world to confront these threats.
"Tonight, let me speak directly to the citizens of Iran: America respects you, and we respect your country. We respect your right to choose your own future and win your own freedom. And our nation hopes one day to be the closest of friends with a free and democratic Iran."
Officials from Russia and China arrived in Tehran today to continue talks. Both countries are permanent members of the UN Security Council, and both have lucrative energy ties with Iran which may impel them to use their vote to veto UN sanctions.
The Russian Foreign Ministry said the visit was not a strong-arm tactic. "You can’t put pressure on a sovereign country," a spokesman said.
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