(Adds quotes on political crisis, details, background) UNITED NATIONS, July 30 (Reuters) - Israeli Defense Minister Ehud Barak said on Wednesday that tough sanctions should be used to prevent Iran from developing nuclear weapons but added that no options should be excluded. Speaking to reporters after a meeting with U.N. Secretary-General Ban Ki-moon, Barak said he told Ban that harsh economic penalties were needed against Tehran. He added that he told Ban, "We believe that no options should be removed in this regard from the table." There has been increasing speculation that either the United States or Israel could attack Iran's nuclear facilities, which Tehran says are intended solely for the peaceful generation of electricity, although both have said force should be a last resort. The speculation has caused jitters on oil markets. When asked about Israeli Prime Minister Ehud Olmert's decision on Wednesday to resign, Barak said, "I think it is a proper and responsible decision made at the right time." In addition to maintaining a steady policy on Iran, he said the Israeli government would continue with the peace process led by Olmert. "I think that Israel will continue its basic strategies," he said. "We are trying to do whatever we can to move ahead with the peace process with the Palestinians." (Reporting by Louis Charbonneau and Megan Davies; Editing by Peter Cooney)
Members of the Democratic Front for the Liberation of Palestine (DFLP) take part in a symbolic funeral in Gaza City July 24, 2008, for Palestinians whose bodies were handed over by ...