Speaking to reporters after talks with British Prime Minister Tony Blair at the White House, Bush said he spent a lot of time with Blair discussing strategy on how to resolve the Iranian nuclear crisis.

"The Iranians walked away from the table. They're the ones who made the decision, and the choice is theirs," Bush said, adding he would talk incentives if Iran halts nuclear moves.

"If they would like to see an enhanced package, the first thing they've got to do is suspend their operations, for the good of the world," Bush said.

The United States has been demanding Iran give up its nuclear program, which, Washington claims, is a threat to regional security. Iran denies the charges, insisting its nuclear program is solely for energy purposes.

The United States and its European allies, including Britain, France and Germany, were reportedly working to agree on a package of incentives and sanctions intended to offer a stark choice that would persuade Iran to abandon its nuclear ambitions.