U.S. President George W. Bush on Tuesday accused Iran of sponsoring terrorists in the Palestinian territories and Lebanon, saying "that must come to an end."

In the prime-time televised the State of the Union address, Bush also criticized the Iranian government for "defying the world with its nuclear ambitions."

"The nations of the world must not permit the Iranian regime to gain nuclear weapons," Bush said.

Bush made the remarks as the International Atomic Energy Agency (IAEA) is studying to send the Iran nuclear case to the U.N. Security Council for possible sanctions.

The United States and its western allies suspect Iran is trying to develop nuclear weapons under cover of a civilian atomic energy program, a charge Iran vehemently denies.

Iran insists its nuclear program is purely peaceful and has threatened to cut off cooperation with international inspectors if the matter is taken up by the UN Security Council.

Source: Xinhua