Israel urges Iran oil embargo even without U.N. okay

Israel's Haaretz daily reported in 2008 that Netanyahu's predecessor, Ehud Olmert, proposed for the United States to enforce a naval blockage on Iran. Regev declined to discuss whether the current Israeli government had similar ideas.

Netanyahu has in the past predicted energy sanctions would be enough to "cripple" Iran. He appeared to demur on Monday by raising the prospect that Iran -- which announced plans to build two new enrichment plants -- could weather even an oil embargo.

Regev said the premier was speaking extemporaneously in his English address to diaspora Jewish leaders, and that there was no change to Israel's strategic view on its arch-foe.

Iran says its uranium enrichment is for energy or medical needs, but Tehran's anti-Israel rhetoric and support for Islamic guerrillas on the Jewish state's borders, as well as concerns over an Israeli military strike, have stirred fears of conflict.

Netanyahu made no reference to the possibility that Israel, which is assumed to have the Middle East's only atomic arsenal, would try to attack Iran's nuclear facilities. Some analysts believe this option is circumscribed by the long ranges, Iranian defences, and U.S. reluctance to see another regional conflict.

(Additional reporting by Jeffrey Heller; Editing by Dominic Evans)