VIDEO - LONDON – "The Iranian leadership's grand design is to convert the Middle East into one religious bloc," President Shimon Peres said Wednesday during his address to the British Parliament. "The Iranian leadership is obsessed with its quest for regional religious domination. This quest is supported by long range missiles, enriched uranium and fanatic incitement – all fueled by the excessive price of oil," he said. "The Iranian leadership's grand design is to convert the Middle East from a region of nations into one religious bloc. They attempt to impose their version on everyone. Whoever disagrees is deemed a heretic and is doomed to disappear." Peres added, "In discussions with Arab leaders I hear their opposition to any form of religious colonialism." The president said a joint effort was the only way to halt the Iranian threat in its tracks, "to answer fear with hope." Regarding Syria, Peres said Israel was "weighing the Syrian option – whether it is a clear cut turn for peace." He also addressed the Saudi initiative for peace in the region, remarking that more negotiations were needed. "The Saudi king has initiated a United Nations General Assembly session dedicated to the culture of peace, and in my address there last week, I responded positively to the Arab initiative," he said. Video: Reuters "However, it should be clear that agreement can not be achieved by a simple 'take-it-or-leave it' offer. We couldn't accept all the articles of the Arab Initiative. The truth is that it's hard to answer all demands at a time when some parties in the region reject peace. "Hamas violently rejects compromise. It continues to fire rockets at Israeli civilians. We can understand land for Peace but will not accept land in return for rocket fire." Peres spoke of the global financial crisis, explaining that it "reflects the world's inter-dependency." He added, "It is likely that the present crisis will further globality and generate more responsibility. Global threats unite us. So do global hopes. We have to take a stand against the menace of terror and nuclear threats." The president said threats of boycott emerging from the UK against products made in the Israeli settlements were harmful to peace. He also remarked that most of the workers employed in the settlements are Palestinians, so they would probably suffer most from such protestation.