U.S. President George W. Bush had talks with outgoing British Prime Minister Tony Blair at the White House Thursday with the two sides vowing to further cooperate on international focuses.

The two leaders discussed the war situation in Iraq and Afghanistan, the Middle East peace process, Iran's nuclear issue, international trade, global warming and efforts to stop the conflict in Sudan's Darfur region.

On early Thursday, Bush and Blair also participated in a secure video conference with U.S. and British officials in Baghdad for an update on security, economic and political issues.

Addressing a press conference after their talks, both Bush and Blair strongly defended their decision to go to war in Iraq and to remain there, saying Iraq has become a main battleground in the war against global terrorism.

Blair also described the war in Iraq as "a fight we cannot afford to lose."

Referring to Iran's nuclear program, Bush said the United Nations should consider new sanctions on Iran if the Islamic Republic refuses to give up in its suspect nuclear program.

"If we're unable to make progress with the Iranians, we want to work together to implement new sanctions through the United Nations," Bush said.

On the Middle East peace process, Bush reiterated his advocation of a two-state solution to the Israeli-Palestinian conflict, saying "we believe in vision of peace between the Palestine and Israel."

Blair, who has been a staunch ally of Bush on issues, among many others, in Iraq and Afghanistan, said at the press conference that "Britain and the United States will always work together."

"I believe that we will remain a staunch and steadfast ally in the fight against terrorism in Iraq, in Afghanistan and elsewhere," Blair said.

Blair, 54, arrived here Wednesday to pay a farewell visit to U.S. President George W. Bush before he steps down as prime minister on June 27. Bush hosted a private dinner for Blair Wednesday night.

Blair announced last week to step down as prime minister on June 27 after a decade in power amid strong domestic criticism for his strong support for Bush and the U.S.-led invasion of Iraq in 2003.

The White House praised him as "an extraordinary leader" and a friend and ally of the United States.

Editor: Yan