Speaking to the Canadian Broadcasting Corporation (CBC), the Israeli leader said Iran "will not stop unless it sees clear determination by the democratic countries of the world and a clear red line.
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"I don't think that they see a clear red line, and I think the sooner we establish one, the greater the chances that we won't need other types of action," he argued.
However, Secretary of State Hillary Clinton said Sunday that the US is "not setting deadlines" for Iran and still considers negotiations as "by far the best approach" to prevent Iran from developing nuclear weapons.
Speaking to Bloomberg Radio, Clinton said Israel is "more anxious about a quick response because they feel that they’re right in the bull’s-eye, so to speak, but we’re convinced that we have more time to focus on these sanctions, to do everything we can to bring Iran to a good-faith negotiation."
The Israeli premier told CBC's "The National" that Jerusalem is in talks with the US about how further pressure can be applied against Iran.
In the interview, which aired Sunday night, Netanyahu lauded his Canadian counterpart Stephen Harper for deciding to sever diplomatic relations with Iran.
The PM praised the surprise move by Ottawa as a "clarion call to action" and said he hopes other countries will follow suit.
"I think everyone in Israel appreciates its (Canada's) forthright stand against a regime that brutalizes its own people, that colludes in the murder of tens of thousands in Syria, that denies the Holocaust and calls for the eradication of the state of Israel while pursuing an illicit program for developing nuclear weapons," Netanyahu told CBC, while calling on world leaders must do more to condemn Iran's undertakings, including its threats against Israel.
"We have to build a wall, not of silence, but of condemnation and resolve. Canada just put a very big brick in that wall that is necessary for the peace of the world," he said.
Netanyahu said Israel did not know Canada was about to break off ties with Tehran, nor did the Jewish state share any special intelligence information with Ottawa.
The Americans are vehemently opposed to a go-it-alone Israeli strike on Iran's nuclear installations before the November presidential elections.
Netanyahu and Defense Minister Ehud Barak have toned down their threats against Iran over the past week, and it seems that they have decided to give the US and the international community more time to increase the economic pressure on the Islamic Republic.