Diplomacy and sanctions won't stop Iran from building a nuclear warhead, according to Israeli Prime Minister Benjamin Netanyahu.

"There has only been one time that Iran actually stopped the program," Netanyahu told Fox News' Chris Wallace Sunday. "That was when it feared US military action."

The prime minister agreed with CIA Director Leon Panetta that sanctions would "probably not" stop the Iranians.

But Netanyahu wouldn't say whether he had discussed military action with President Barack Obama.

"I'm not going to get into the confidential discussions, and I'm not confirming anything of the sort but I am saying that the president's position that all options are on the table might actually have the only real effect on Iran if they think it's true," he said.

The prime minister was also cold to the idea of participating in an U.N. conference on a nuclear-free Middle East.

"As far as a nuclear weapons free zone, you know, when the lion lies down with the lamb, and you don't need a new lamb every day to satisfy the lion, then we might have this kind of transformation in the Middle East. But so far, you know who has been violating the nuclear non-proliferation pact, those who signed it. Iran, Iraq, Libya, and Iran violates it while calling for Israel's destruction and racing to develop atomic weapons to that end. So I think we should stay focused on the real problem in the Middle East. It's not Israel," said Netanyahu.

This video is from Fox's Fox News Sunday, broadcast July 11, 2010.

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