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Mullen pointedly said "the strike option" - is one possible outcome. He suggested that a strike, meaning missile or other attacks to blow up Iran's known nuclear facilities, is a last resort. It would be "very destabilizing," Mullen said.

On Sunday, Vice President Joe Biden had suggested that the new U.S. administration would not stand in the way of an Israeli strike. That is not the message U.S. officials have been trying to deliver in public and private, but spokesmen insisted Biden was not speaking out of turn.

"I don't know why it is better to have somebody in a so-called super max facility in, say, Colorado, than it is to keep them in Guantanamo, a state of the art facility that we built not too long ago for the explicit purpose of holding these people. There's nothing wrong with the prison at Gitmo," Kyl said.

The sources said the Israeli leader feels there is no point in seeking American acquiescence at this stage givenObama's stated intention to pursue a policy of diplomatic engagement with the Tehran regime, The Washington Times reported. "There was a decision not to press [for U.S. approval of a strike] because it was probably inadequate for the engagement policy and what we know about Obama's approach to Iran," a senior Israeli official told The Washington Times.

Discussion over authorization for such a strike arose after Vice President Joe Biden told ABC news earlier this week that the U.S. would not stand in the way of an Israeli attack on Iran. "Israel can determine for itself - it's a sovereign nation - what's in their interest and what they decide to do relative to Iran and anyone else," Biden said.

The chairman of the U.S. Joint Chiefs of Staff said on Tuesday that a preemptive military strike against Iran should be avoided "if possible," but emphasized that all options are still on the table. "I worry about a nuclear arms race in the Middle East region; I don't think any one of us can afford it," said Admiral Michael Mullen, during a conference at the Center for Strategic and International Studies. "I don't see a lot of space between where Iran is headed and the potential of where that development might lead. All options are certainly on a table, including certainly military options."

My concern is that the clock continues ticking," Mullen said. "I believe that Iran is very much focused on getting that capability. This a very narrow space we have towards that objective." Nevertheless, Mullen added, a preemptive strike is "really not a place we should go if possible."

"If the threat from Iran's nuclear and ballistic missile program is eliminated, the driving force for missile defense in Europe will be eliminated," Obama said in remarks prepared for delivery to graduates from Moscow's New Economic School.

"America wants a strong, peaceful and prosperous Russia," Obama said. "On the fundamental issues that will shape this century, Americans and Russians share common interests that form a basis for cooperation," the U.S. President went on to say.

Mr Obama has pledged substantial economic assistance for Pakistan - more than $1bn annually over the next five years - but the money will depend on the army's performance against the Taleban and al-Qaeda.

The BBC's Barbara Plett in Islamabad says President Zardari has now told the two US envoys that this is not good enough.

Pakistani Foreign Minister Shah Mahmood Qureshi said: "We can only work together if we respect each other and trust each other."

"Pakistan is fighting a battle of its own survival," his office quoted him as telling Mr Holbrooke.

Our correspondent says his statement revealed the frustration and resentment about the aid conditions - which reflect American distrust of the Pakistani army. The conditions strengthen Pakistani perceptions of its army as a mercenary force doing American bidding, she adds.

His statement after the meeting read: "Pakistan... needs unconditional support by the international community in the fields of education, health, training and provision of equipment for fighting terrorism."

Mr Qureshi admitted there were differences on the issue. "We did talk about drones, and let me be very frank - there is a gap. There is a gap between us and them, and I want to bridge that gap."

In introducing the legislation on the Senate floor, Kerry, chair of the Foreign Relations Committee, warned, "An alarming percentage of the Pakistani population now sees America as a greater threat than al Qaeda. "Until we change that perception there is, frankly, very little chance of ending tolerance for terrorist groups or persuading any Pakistani government to devote the political capital necessary to deny such groups ... the sanctuary that they've been able to receive."

Speaking at a news conference capping his 100th day in office, Obama said the United States has "huge national security interests in making sure that Pakistan is stable" and doesn't end up a "nuclear-armed militant state."

After making two visits to Pakistan in less than three weeks, Adm. Michael Mullen, chairman of the U.S. Joint Chiefs of Staff, is "very alarmed by the growing extremist threat in Pakistan and remains frustrated particularly by the political leadership's inability to confront that threat," according to his chief spokesman.

Clinton and Defense Secretary Robert Gates have called Taliban gains in Pakistan an "existential threat" to the country.

The bill takes into account the fluid situation in Pakistan, leaving military aid to be determined on a year-by-year basis. But it requires Obama to certify Pakistani forces are making progress in combating al Qaeda and the Taliban and not interfering with civilian rule in order for aid to continue, a condition both the Obama administration and the Pakistani government have opposed.

The bill also calls for strict benchmarks to measure the effectiveness of the aid. In addition to requiring Obama to submit a report to Congress outlining a strategic plan for the aid, the administration is to submit a report every six months detailing how the money is spent and judging its effectiveness. Clinton and Gates are to submit a comprehensive cross-border strategy for the Pakistani-Afghan border, as well as annual reports on the progress of Pakistani Security Forces.

Yet Pakistani authorities deployed just several hundred poorly paid and equipped constabulary forces to Buner, who were repelled in a clash with the insurgents, leaving one police officer dead

The limited response set off fresh scrutiny of Pakistan’s military, a force with 500,000 soldiers and a similar number of reservists. The army receives $1 billion in American military aid each year but has repeatedly declined to confront the Taliban-led insurgency, even as it has bled out of Pakistan’s self-governed tribal areas into Pakistan proper in recent months.

The military remains fixated on training and deploying its soldiers to fight the country’s archenemy, India. It remains ill equipped for counterinsurgency, analysts say, and top officers are deeply reluctant to be pressed into action against insurgents who enjoy family, ethnic and religious ties with many Pakistanis.

In the limited engagements in which regular army troops have fought the Taliban in the tribal areas and sections of the Swat Valley, they not only failed to dislodge the Taliban, but also convinced many Pakistanis that their own military was as much of a menace as the Islamic radicals it sought to repel, residents and analysts say.

In Washington, a Defense Department official who is monitoring Pakistan closely said that the poorly trained constabulary force was sent Thursday because Pakistani Army troops were not available, and Pakistani generals were reluctant to pull reinforcements off the border with India — something American officials have encouraged them to do.

Instead, the military, which is stretched thin in the areas along the Afghan border, has favored negotiations, and the civilian government has acquiesced. “The government is too worried about its own political survival to take on the militants,” the Defense Department official said.

Where it has engaged the insurgents, the Pakistani Army, untrained in counterinsurgency, has become reviled by the civilian population for its heavy-handed tactics, which have cost many lives while failing to stop the Taliban. At the same time, the police and paramilitary forces have proved too weak to stand up to the militants. In Buner, desperate residents had resorted to forming their own militias, as much to keep out the military as the Taliban. That effort, too, has now failed.

On Capitol Hill, legislators preparing to introduce a bill to provide Pakistan with $7.5 billion in nonmilitary aid over five years may face a steep challenge.

In a sign of the urgency of the crisis, the special envoy for the region, Richard C. Holbrooke, is sending Secretary of State Hillary Rodham Clinton memos several times a day with his latest reading of the situation in Pakistan, an American official said. Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, briefly visited Pakistan on Wednesday night and Thursday from Afghanistan, to meet with Gen. Ashfaq Parvez Kayani, the Pakistani Army chief of staff. An American official briefed on discussions said the Pakistani leadership was “very concerned.”

Buner (pronounced boo-NAIR), home to about one million people, lies in the heart of North-West Frontier Province, bordering seven other districts. Its capture not only advances the Taliban closer to the capital, but also gives the Taliban a vital hub to extend their reach.

More than 30 armed militants entered the Shangla district, east of the main Swat Valley and north of Buner, and were seen patrolling an area around Loch Bazaar, the independent channel Geo TV reported Thursday, quoting witnesses.Government officials also confirmed that militants have been seen in Totali, far south in Buner and close to the boundary with the Swabi district, which lies close to the main highways into the capital.

Armed militants have also been seen visiting mosques and patrolling in Rustam, a town on the boundary between Buner and the adjoining district of Mardan, said Riaz Khan, a lawyer living in Mardan, the second largest town in North-West Frontier Province. “People are anxious and in a state of fear,” he said.

The Taliban were making a concerted push into areas that overlook the capital, lawmakers and government officials in North-West Frontier Province said.

A powerful religious party leader, Fazlur Rehman, who is allied with the government, warned that militants had reached into the Mansehra district, close to the Tarbela Dam, a vital source of electricity to the center of the country.

“If the Taliban continue to move at this pace they will soon be knocking at the door of Islamabad,” he told Parliament on Wednesday, adding that Margalla Hills, north of the capital, seem to be the only hurdle to the Taliban advance.

The Pakistani Taliban, who number in the thousands across the tribal areas and the Swat region, have declared their aim of establishing Shariah rule throughout Pakistan. But for now, their expansion may be opportunistic and their strength sufficient only to establish local fiefdoms, or “micro-emirates of Shariah,” said Christine Fair, a senior research associate at the RAND Corporation.“I don’t know what the Taliban’s game plan is, but what seems apparent is the state has no game plan,” she said. “The Pakistani state is not able to stop them and they expand where they can.”

Some analysts fear that the US may push India to limit its presence in Afghanistan to "please" Pakistan. India is spending millions of dollars in infrastructure projects in Afghanistan.

Mr Holbrooke has denied that Washington wanted to become a mediator between the two neighbours. "That is not our job," he told reporters in Islamabad. He said the US was "not going to be involved" in mediating in the dispute over Kashmir.

Mr Obama has pledged substantial economic assistance for Pakistan - more than $1bn (£684m) annually over the next five years - but the money will depend on the army's performance against the Taleban and al-Qaeda.

The Mullen-Ashkenazi axis, like similar axes between heads of the two countries' intelligence communities, allows the Americans to sense the genuine atmosphere beneath the public propaganda disseminated in Israel and to understand the extent to which Israel is really concerned about the Iranian nuclear threat. It also affords them the opportunity to reassure, to delay and, at the very least, to walk the hidden line between the desire not to officially know in advance, in order to safeguard the ability to shrug off responsibility, and the need not to be surprised.

Make no mistake about the Obama administration, when it comes to Iran: Its policy differs from that of the Bush administration only in style, not in content. Its officials express themselves in positive terms, cloaked in an expression of conciliation, as opposed to the angry face worn by president George W. Bush - but the conclusions are similar, as are the results. Gary Samore, who Jones put in charge of coordinating the issue of weapons of mass destruction, said often, before his appointment, including during a speech at the Herzliya Conference in 2007, organized by Uzi Arad (today Benjamin Netanyahu's national security advisor), that the Iranians will continue their efforts to obtain nuclear weapons and that economic and diplomatic pressure will not help.

Ashton Carter, recently nominated by the president to be under secretary of defense for acquistion, technology and logistics, offered a similar analysis for the Bush administration, when he outlined three alternatives to confronting Iran. Plan B3, the military option, also entailed a possible bombing of Iranian oil installations, which are not protected and concealed like components of the nuclear infrastructure. The prevailing balance of power within the Obama administration tends to favor attacking Iran's nuclear installations, or to tolerate an Israeli attack. A prominent opponent of using military force against Iran, Charles Freeman, who had been slated to head the U.S. National Intelligence Council, was dropped under pressure of Israel's American supporters.

Obama will wait - not only for Iranian elections, scheduled for June (and those in Lebanon, that same month), but also for September's elections in Germany, and for Britons to vote at more or less the same time (elections have yet to be scheduled), in order to know who will stand by his side in the trenches. In that way 2009 will pass without a decision, but not all of 2010, because come that November, Congressional elections will be held, immediately after which the Democrats will begin organizing Obama's reelection campaign. The summer of 2010 will be critical, because by then the evacuation of most of the American forces from Iraq will be completed and fewer exposed targets will remain for Iranian revenge attacks.

The development of the Iron Dome system for intercepting Katyusha rockets, whose first battery will protect the environs north of the Gaza Strip (Ashkelon, Sderot), is expected to be completed by the summer of 2010. That will make it difficult for Hamas to open another front to harass the IDF on Iran's behalf. In the coming months, the tests of the Arrow missile defense system will continue, in a scenario that simulates an attack by a long-distance Iranian missile. The tests will be carried out in cooperation with American systems, including the large radar facility at the Nevatim air base. Preparations for defence against a radioactive attack will also improve, at an event to be staged at either an Israeli or an American port, as will preparations for a plague of smallpox, in a joint exercise involving Israel and one of NATO's important European member states.

In the Pentagon's most recent report about the strengthening of China, Israel receives a pat on the back, of the kind given to a well-behaved child: It has been cured of the habit of providing air-to-ground Harpy missiles to China, which extend the Chinese air force's operational range, and has also enforced stricter export supervision. The Americans are displaying a false naivete: Nothing has changed except for two offices having been moved around administratively. The decision to launch a military operation against Iran, particularly using American-made planes (such as the F-16, whose supply was suspended after Israel's 1981 attack on the Iraqi nuclear reactor), will have to be preceded by feelers to discern where Obama stands exactly on the continuum between approval and opposition. Apparently Israel wants Obama to emerge sufficiently strengthened from this week's NATO summit, but still too weak to say no to Israel.

If a North Korea link is found, it would mark a new turn in Pyongyang's attempts to lash out at the U.S. North Korea has been building up its capability for cyberattacks in the past couple of years, computer security specialists said. North Korea recently increased the number of people in a cyber-warfare unit, South Korea's Yonhap news agency reported last month.

U.S. government Web sites attacked included those of the Defense Department, National Security Agency, Treasury Department, Secret Service, State Department, Federal Trade Commission and Federal Aviation Administration, according to the cyber-security unit of VeriSign Inc., a computer-security company, and others familiar with the attacks. The attacks appear to have occurred roughly from Saturday to Tuesday.

Private sites attacked, according to a cyber-security specialist who has been tracking the incidents, included those run by the New York Stock Exchange, Nasdaq, the Washington Post, Amazon.com and MarketWatch.

Most U.S. federal Web sites appeared to be running properly Wednesday. In South Korea, several government sites were down late Tuesday and early Wednesday but many were back to normal by Wednesday afternoon. "There is a connection between what is going on here in the states and what is going on in [South] Korea," said Richard Howard, director of intelligence at VeriSign's iDefense cyber-security unit.

North Korea turned more antagonistic after the illness of dictator Kim Jong Il last August and September. The country had done little to prepare for a successor, and Mr. Kim's illness triggered an internal shuffle that apparently raised the influence of hard-line military figures.

At the White House, spokesman Nicholas Shapiro said the attacks over the weekend "had absolutely no effect on the White House's day-to-day operations." The only effect, he said, was that some Internet users in Asia may not have been able to access the White House's Web site for a time.

President Barack Obama has made bolstering cyber-security a priority. He said in May he would create a new White House cyber-security post, though it hasn't yet been staffed. People familiar with the process say the White House has had difficulty finding someone to take the job.

Defense officials confirmed Pentagon networks were struck but said the intrusions were detected quickly and did no real damage. Adm. Mike Mullen, the nation's top military officer, said Pentagon networks are under near-constant attack. "I grow increasingly concerned about the cyber-world and the attacks," he said.

James Lewis, a cyber-security specialist at the Center for Strategic and International Studies, said of the attack, "It's really a test of which U.S. agencies are ready and which aren't."

The New York Stock Exchange's parent company, NYSE Euronext, announced at 12:35 p.m. Wednesday that its Web site, but not its trading systems, had been targeted. Exchange officials weren't aware of the attack until notified by the government on Tuesday, said a person familiar with the events. An NYSE spokesman said the exchange's systems detected zero impact either on the Web site or on the separate trading operations. An official of Nasdaq said there wasn't any impact on its business.

Those responsible used a method similar to attacks in recent years on the governments of Estonia and Georgia, called a "distributed denial of service" attack. It is a maneuver in which many computers act in concert to overwhelm Web sites.

The cyberattacks came as Washington's point man on North Korea sanctions, Ambassador Philip Goldberg, concluded a weeklong trip to China and Malaysia aimed at tightening the financial screws on Pyongyang. Last week, the Obama administration announced sanctions on two North Korea-linked arms companies. The U.S. Treasury last month listed 17 North Korean banks and businesses that it is seeking to constrict financially.