Clinton warns Iran: U.S. will protect its friends

NEW YORK - U.S. Secretary of State Hillary Rodham Clinton Wednesday gave Iran an ultimatum to accept the administration's offer for engagement and join the international community or to "continue down a path of further isolation." She urged Arab states to take immediate steps to improve their ties with Israel in order to bolster Mideast peace hopes.

"We remain ready to engage with Iran, but the time for action is now," she said. "The opportunity will not remain open indefinitely."

In a wide-ranging policy address to the Council on Foreign Relations, Clinton pledged that the U.S. will "not hesitate to defend our friends, our interests, and above all, our people vigorously and when necessary with the world's strongest military."