Occupied Jerusalem: US President George W. Bush warned Iran of "serious consequences" if it meddles again with US warships in the Gulf.

Iranian boats on Sunday harassed and provoked three US Navy ships in the Strait of Hormuz. US officials said Iran threatened to explode the vessels.

Bush said "all options are on the table" to protect US ships. He said the Iranian boats "were very provocative and it was a dangerous gesture on their part,'' he said.

“There will be serious consequences if they attack our ships, pure and simple. And my advice to them is don't do it," he said.

Saying he still regarded Iran as a dangerous threat, Bush said, "We'll continue to keep the pressure on the Iranians. And I believe we can solve this problem diplomatically."

Bush also acknowledged widespread doubts about whether he can clinch a major peace agreement by the end of his presidency in January, 2009.

"I'm under no illusions," Bush said at a news conference on Wednesday on his first visit to the region. "It's going to be hard work."