HALIFAX (Canada) (AFP) - The United States faces a possible war with Iran to curb its nuclear ambitions and a period of confrontation with China over its currency, a top US lawmaker warned Saturday. Republican Senator Lindsey Graham said his fellow conservative, fresh from their historic elections romp this week, support bold action to deal with Iran. If President Barack Obama decides to be tough with Iran beyond sanctions, I think he is going to feel a lot of Republican support for the idea that we cannot let Iran develop a nuclear weapon, he told the Halifax International Security Forum. The last thing America wants is another military conflict, but the last thing the world needs is a nuclear-armed Iran... Containment is off the table. The South Carolina Republican saw the US going to war with the Islamic republic not to just neutralise their nuclear programme, but to sink their navy, destroy their air force and deliver a decisive blow to the Revolutionary Guard, in other words neuter that regime. He spoke just days before expected nuclear talks will see US and Iranian officials sitting at the same table for discussions on Tehrans nuclear drive. The two countries have lacked diplomatic ties since the Iran hostage crisis of 1979. World powers led by Washington suspect Irans uranium enrichment program is aimed at making nuclear weapons, a charge Tehran denies. US Democratic Senator Mark Udall, who joined Graham during a panel discussion at the forum in Halifax, Nova Scotia, urged continued sanctions against Iran. But he also noted that every option is on the table, a thinly veiled reference to possible military action. Israeli Defence Minister Ehud Barak said negotiations were still at the stage of diplomacy and sanctions. Its not clear if this will work at the end, he cautioned. Iran is a major threat to any conceivable world order. Various UN resolutions and sanctions have sought to halt Irans uranium enrichment activities, so far having little effect. Graham also warned of a forthcoming period of confrontation with China over its cheating currency manipulation. US and European lawmakers have called for a stronger Chinese currency as their economies struggle to recover from the global financial crisis. US lawmakers claim the yuan is grossly undervalued and causes global trade imbalances. Meanwhile, French foreign ministry said Friday that the six world powers involved in negotiations with Iran are united on the need to update an offer to send some of Tehrans uranium overseas for enrichment. There is no disagreement among the six (Britain, China, France, Germany, Russia the United States) on the need to update the offer made to Iran in the autumn of 2009 and there is also no disagreement on the principle and parameters of this update, the ministry said. This is about a mechanical update, because the centrifuges continue to turn. Its a simple, mathematical question, foreign ministry spokeswoman Christine Fages said at a press briefing. London and Paris oppose the idea, Le Monde reported, as it risked legitimising Irans uranium enrichment activities. Paris and Washington have neither confirmed nor denied the existence of the reported proposal linked to Bushehr or the alleged disagreements. Western nations fear Iran is trying to build a nuclear weapon, while Tehran insists its program is for purely peaceful purposes. Various UN resolutions and sanctions have been put in place to halt Irans uranium enrichment activities, so far little effect.