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    UPDATE 7-In unusual snub, Obama to avoid meeting with Netanyahu

    * Israeli official says request turned down

    * White House denies rejection but confirms they won't meet

    * Obama telephones Netanyahu on Tuesday night

    WASHINGTON/JERUSALEM, Sept 11 (Reuters) - In a highly

    unusual rebuff to a close ally as tensions escalated over how to

    deal with Iran's nuclear program, the White House said on

    Tuesday President Barack Obama would not meet Benjamin Netanyahu

    during the Israeli prime minister's U.S. visit later this month.

    The apparent snub, coupled with Netanyahu's sharpened

    demands for a tougher U.S. line against Iran, threatened to

    plunge U.S.-Israeli relations into crisis and add pressure on

    Obama in the final stretch of a tight presidential election

    campaign.

    An Israeli official, who declined to be identified, said the

    White House had refused Netanyahu's request to meet Obama when

    the Israeli leader visits the United States to attend the U.N.

    General Assembly, telling the Israelis, "The president's

    schedule will not permit that."

    White House spokesman Tommy Vietor denied that Netanyahu had

    ever made such an overture - let alone that it had been spurned

    - insisting instead that the two leaders were attending the

    General Assembly on different days and would not be in New York

    at the same time.

    With U.S.-Israeli differences increasingly laid bare and

    allies of Republican presidential challenger Mitt Romney seizing

    the chance to slam Obama over his Israel policy, the president

    phoned Netanyahu on Tuesday night.

    Netanyahu has had a strained relationship with Obama, but

    they have met on all but one of his U.S trips since 2009. The

    president was on a foreign visit when the prime minister came to

    the United States in November 2010.

    By withholding a meeting, the Democratic president could

    alienate some Jewish and pro-Israel voters as he seeks a second

    term in the Nov. 6 election. Romney has already accused Obama of

    being too tough on Israel and not hard enough on Iran.

    Obama and Netanyahu, according to a White House summary of

    their call, reaffirmed a "united" determination to prevent Iran

    from acquiring a nuclear weapon and to continue close

    consultations. But they mentioned nothing about the "red lines"

    Netanyahu wants Obama to set for Tehran.

    Obama's avoidance of a face-to-face meeting could signal

    U.S. displeasure with Netanyahu's intensifying push a specific

    ultimatum to Iran. Obama aides say privately they believe

    Netanyahu favors Romney, a fellow conservative, although the

    Israeli leader has been cautious to avoid being seen interfering

    in the election campaign.

    Word that the two men would not meet came on the same day

    that Netanyahu said the United States had forfeited its moral

    right to stop Israel from taking action against Iran's nuclear

    program because it had refused to be firm with Tehran itself.

    Netanyahu has argued that setting a clear boundary for

    Iran's uranium enrichment activities and imposing stronger

    economic sanctions could deter Tehran from developing nuclear

    weapons and mitigate the need for military action.

    In comments that appeared to bring the possibility of an

    Israeli attack on Iran closer, Netanyahu took Washington to task

    for rebuffing his call to set a clear "red line" for Iran's

    nuclear program, which has already prompted four rounds of U.N.

    sanctions.

    "The world tells Israel, 'Wait, there's still time.' And I

    say, 'Wait for what? Wait until when?'" Netanyahu said.

    "Those in the international community who refuse to put red

    lines before Iran don't have a moral right to place a red light

    before Israel," he added, addressing a news conference with

    Bulgaria's prime minister.

    John McCain and Lindsey Graham, Republican senators and

    critics of Obama's foreign policy, said in a joint statement:

    "It is puzzling that the president can't make time to see the

    head of state of one of America's closest allies in the world."

    "If these reports are true, the White House's decision sends

    a troubling signal to our ally Israel about America's commitment

    at this dangerous and challenging time," they said.

    'UNPRECEDENTED ATTACK'

    The website of Israeli daily newspaper Haaretz called

    Netanyahu's words "an unprecedented verbal attack on the U.S.

    government".

    Iran makes no secret of its hostility to Israel, widely

    assumed to be the region's only nuclear-armed power, but says

    its nuclear program is purely peaceful.

    Netanyahu's relations with Obama have been tense because of

    Iran and other issues, such as Jewish settlement building in the

    occupied West Bank.

    But he has never framed his differences with Obama - who has

    pledged he will "always have Israel's back" and has not ruled

    out military action against Iran if all else fails - in moral

    terms.

    Obama has been seeking to shore up his advantage over Romney

    with Jewish voters - who could make a difference in election

    battleground states like Florida and Ohio - by stressing his

    support for Israel's security. He received 78 percent of the

    Jewish vote in 2008, but a nationwide Gallup poll in June showed

    him down to 64 percent backing versus Romney's 29 percent.

    While seeking to put Netanyahu in his place might not go

    down well with pro-Israel voters, the White House may also be

    trying to avoid an embarrassing encounter. When the two men met

    in the Oval Office in May 2011, Netanyahu lectured Obama on

    Jewish history and criticized his approach to

    Israeli-Palestinian diplomacy.

    Netanyahu's office had offered a solution to the leaders'

    scheduling problems by having him visit Washington before his

    U.N. speech on Sept. 28, but the White House did not accept the

    idea, the Israeli official said.

    Obama, who is keeping up a busy schedule of campaign rallies

    across the country, is expected to take a break to address the

    opening session at the United Nations on Sept. 25.

    There was no immediate comment from the Romney campaign,

    which had curtailed its public statements out of respect for the

    11th anniversary of the Sept. 11, 2001, attacks.

    Netanyahu's harsh comments on Tuesday followed U.S.

    Secretary of State Hillary Clinton's remarks on Monday that the

    United States would not set a deadline in further talks with

    Iran, and that there was still time for sanctions and diplomacy

    to work. Clinton - instead of Obama - will meet Netanyahu at the

    United Nations later in September, the White House said.

    U.S. Defense Secretary Leon Panetta said on Tuesday that

    Washington would have little more than a year to act to stop

    Iran if it decided to produce a nuclear weapon.

    Iran has threatened to retaliate against Israel and U.S.

    interests in the Gulf if it is attacked, and any such conflict

    could throw Obama's re-election bid off course.

    DEADLINE

    Netanyahu did not mention Clinton by name, but pointedly

    parroted her use of the word "deadline," saying: "If Iran knows

    that there is no 'deadline', what will it do? Exactly what it's

    doing. It's continuing, without any interference, towards

    obtaining a nuclear weapons capability and from there, nuclear

    bombs."

    "So far, we can say with certainty that diplomacy and

    sanctions haven't worked. The sanctions have hurt the Iranian

    economy, but they haven't stopped the Iranian nuclear program.

    That's a fact. And the fact is that every day that passes, Iran

    gets closer and closer to nuclear bombs."

    Despite the recent tougher Israeli rhetoric, over the past

    week, Netanyahu, in calling for a "red line," had appeared to be

    backing away from military action. Polls suggest a majority of

    Israelis do not want to strike Iran without U.S. support.

    Defense Minister Ehud Barak seemed to criticize Netanyahu's

    assault on the Jewish state's biggest ally.

    "Despite the differences and importance of maintaining

    Israel's independence of action, we must remember the importance

    of partnership with the United States and try as much as

    possible not to hurt that," a statement from his office said.

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