Bush to Iran: Don't be provocative

Riyadh: US President George W. Bush said on Tuesday that he would hold Iran responsible if it hit American ships and warned the Islamic Republic not to behave provocatively in Gulf waters.

"If they hit our ships, we will hold Iran responsible," Bush told a small group of journalists. "They'd better be careful and not be provocative."

Bush reiterated his threat of serious consequences if Iranian vessels confront US warships in the Gulf but insisted he had told Gulf leaders on a regional tour that "I want to solve this diplomatically." Washington says its warships were threatened by Iranian craft in the Strait of Hormuz.

But diplomats said Bush was faced with "difficult talks" in Saudi Arabia which, like other Gulf states, is determined to avoid further conflict in the region after the Iraq invasion.

Arms sale to Saudis

Yesterday's talks between Bush and King Abdullah were being held at the king's ranch in Janadriyah outside Riyadh.

As part of his efforts to contain Iran, Bush made clear on Monday his commitment to a major arms sale to Saudi Arabia.

Just hours after his arrival in Riyadh, the US administration said it notified Congress of its intention to offer the Saudis a package of advanced weaponry as part of a multibillion-dollar deal with Gulf allies.

The deal, covering 900 precision-guided bomb kits worth about $120 million, has raised concerns in Israel and its US supporters about the military balance of power in the region.