Iran is making "a very, very serious mistake" if it thinks the international community will allow it to develop nuclear weapons, Tony Blair has said.
But the prime minister insisted that the potential for military action against Iran "is not on our agenda".
He told the Commons liaison committee that the problem could be dealt with by "peaceful and diplomatic means".
The United Nations nuclear watchdog has voted to report Iran to the Security Council over its nuclear activities.
Mr Blair told MPs: "There is a real concern about Iran at the moment - there has got to be - not just on nuclear weapons, but in respect of their support for terrorists."
But he insisted that "Iran is not Iraq", in an attempt to allay fears about future military action.
However, when Iranian President Mahmoud Ahmadinejad makes comments that "Israel must be wiped off the map", it increases concern about whether Iran can be trusted not to develop nuclear weapons, he said, reports BBC news.
Russian President Vladimir Putin, in his speech dedicated to the Day of the Russian Navy, recalled the threats that Russia is currently facing from a number of countries.