A defiant Iran faced the prospect of economic sanctions after U.N. inspectors reported that the country ignored yesterday's deadline to halt its nuclear program and has been hindering efforts to determine whether it seeks to secretly develop nuclear weapons.

President Bush, invoking the same language that he used to describe Iraq before the March 2003 invasion, called Iran a "grave threat" and said "there must be consequences" for Tehran's actions. "It is time for Iran to make a choice," Bush said in a speech to the American Legion's national convention in Salt Lake City.