After talks with Israeli Prime Minister Benjamin Netanyahu, German chancellor Angela Merkel has once again stated that Iran could face new economic sanctions if it does not negotiate on its controversial nuclear program, which Iran insists is for power generation only.

Merkel also called on Israel to freeze its illegal settlement activity in the West Bank and occupied territories, a position that has seen U.S President Barak Obama in hot water with hard line Israeli Zionists.

"If there is no positive answer by September we will have to consider further measures," said Mrs Merkel, according to a report from the BBC.

"Progress on the issue of settlements - a freeze on settlements - is an important building block and a prerequisite for a restart of the Middle East peace process," she said.

Speaking at a Berlin press conference, that took place after the talks, Netanyahu called for "crippling sanctions" against Iran to in order to stop its nuclear program.

"It is possible to put real pressure, real economic pressure, on this regime if the major powers of the world unite," the hawkish PM said.

However, in European polls, it is Israel who is seen as the greatest threat to world peace.

Israel, who has recently been under the heavy guns of the international community for its war crimes in Gaza, has been stealing Palestinian lands for decades. The Jewish state has been widely criticized for its wanton destruction during Operation Cast Lead, its continuation of illegal blockades, and its use of chemical weapons against civilians by groups such as Human Rights Watch, Amnesty International, and the Untied Nations. Israel has also been recently accused of harvesting organs from dead Palestinians for sale on the black market.

Iran, who has always maintained that it does not desire nuclear weapons, and has not attacked another country in over 2000 years, has repeatedly stood against Israel war crimes and apartheid.