Indeed, Iranian President Mahmoud Ahmadinejad wasted no time doing a victory dance when he learned the result of the recent report by U.S. intelligence services revealing that the Islamic republic had put a halt to its nuclear enrichment program in 2003.

But the Iranian president's rejoicing may have been somewhat premature. Addressing a conference on Gulf security in Bahrain this past weekend, U.S. Secretary of Defense Robert M. Gates spoke of "deep concerns of the U.S. and its allies," over Iran's continued quest for nuclear power.

Contradicting the findings of the National Intelligence Estimate - or at least the unclassified bits that were released to the public - the secretary of defense said that this week marks a watershed in interactions between Iran and the U.S. intelligence community.

"Astonishingly, the revolutionary government of Iran has, for the first time, embraced as valid an assessment of the United States intelligence community," said Gates, referring to the NIE report on Iran's nuclear weapons program "And since that government now acknowledges the quality of American intelligence assessments," he continued, "I assume that it will also embrace as valid American intelligence assessments of:

-- Its funding and training of militia groups in Iraq;

-- Its deployment of lethal weapons and technology to both Iraq and Afghanistan;

-- Its ongoing support of terrorist organizations - like Hezbollah and Hamas - that have murdered thousands of innocent civilians; and

-- Its continued research on development of medium-range ballistic missiles that are not particularly cost-effective unless equipped with warheads carrying weapons of mass destruction."

Gates, who used to be director of the CIA, said that the NIE report "expressed with greater confidence than ever that Iran did have a nuclear weapons program." Gates said that the report issued by all 16 U.S. intelligence services is explicit in stating that Iran is keeping its options open.

"The Islamic republic is continuing its nuclear enrichment program," said Gates. "Everywhere you turn, it is the policy of Iran to foment instability and chaos, no matter the strategic value or cost in the blood of innocents - Christians, Jews and Muslims alike.

"We must keep all our options open," Gates told the Fourth International Institute of Strategic Studies security summit in Manama, capital of the tiny Gulf kingdom of Bahrain.

Gates called for greater sanctions to be taken against the Islamic republic, saying the United States and the international community must "continue and intensify economic, financial, and diplomatic pressures on Iran," until they suspend enrichment and agree to have their sites verified by the international community.

"Let's continue to work together to take the necessary peaceful but effective measures necessary to bring a long-term change of policies in Tehran," he said during the opening speech of the first day's plenary session.

The defense secretary said the United States and its allies "share a deep concern over Iran's current course." He added that for 29 years he has been watching the Iranian government and they have yet to keep their word.

Gates used the podium to bash out at Syria and Iran, saying, "Any nation that supports insurgents or militias in Iraq - either actively or passively - is in reality doing harm to itself, and all the people of the Middle East, be they Sunni, Shiites, or any other sect.

"The implications of Iran's ongoing refusal to comply with its international obligations and the destabilizing effects of its actions," said Gates, "was forcing the United States to strengthen its security ties in the Gulf region."

But if Iran presented a rather gloomy picture, Gates, on the other hand, offered an optimistic view of U.S. foreign policy in the Middle East, particularly when compared to the previous year.

"The record of American activity over the past year should dispel that uncertainty," he said.

"The progress is real," said Gates, adding, "but it is also fragile."

He said the Iraqi government must use this breathing space "bought with the blood of American, coalition, and Iraqi troops to pass critical legislation."

Gates said since the surge of U.S. forces began earlier this year, civilian deaths across Iraq went down by 60 percent, and they're down 75 percent in Baghdad. "Recently, there was the lowest number of the single-day attacks across the nation in three 1/2 years."

The improvement in security, the secretary of defense attributed to a number of factors, among them:

-- A change in military tactics intended to protect Iraqi civilians from insurgents, militias, and foreign terrorists.

-- The increasing effectiveness of the Iraqi military, in tandem with U.S. troops.

-- The decision by some militia groups to stand down from offensive operations. And,

-- The groundswell of ordinary citizens who have risen up to fight against al-Qaida in Iraq and protect their families and their neighborhoods.

-- The improving economic factor that helped stabilize Iraq. The debt incurred by Saddam Hussein has been significantly reduced by the international community.

Gates said three points affected people in the United States and the Middle East. At the top the list -- as can be expected -- were the "obstacles and opportunities" in Iraq.

Just back from Iraq where he met American military commanders and Iraqi leaders, Gates credited a reduction in violence in Iraq to the U.S. troop surge adding that there was a "semblance of daily life and many cities and communities."

Gates said that continuation of those positive trends rested not only on the United States and Iraqi government but also on the cooperation of all countries that were part of the dialog.

"It is no secret that U.S. troop levels will begin to decline this month," he said - a reality that represents both risks and opportunities for the entire region, and added "Let's continue to work together to take the necessary peaceful but effective measures necessary to bring a long-term change of policies to Tehran."

But when asked if he did not consider the United States was using double standards by accepting Israel's nuclear program, Gates simply replied: "No I do not."

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