US President George W Bush has accused Iran and Syria of continuing to support terrorism and warned that the US may take action. In one of his strongest threats to the two countries recently, Bush said their behaviour was "completely unacceptable" and that any state which continued to support terror "will be held accountable". He also said their actions hampered peace efforts in the Middle East, calling terrorism "the greatest obstacle to the creation of a Palestinian state". "Supporting and harbouring terrorists undermines prospects for peace in the Middle East and betrays the true interests of a Palestinian state," he said, during a two-day visit to his Texas ranch by Italian Prime Minister Silvio Berlusconi. Iran and Syria have been the subjects of increasing attacks by the Bush administration, which considers them state sponsors of terrorism.

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