French President Nicolas Sarkozy has told Israel's parliament that a nuclear-armed Iran is "unacceptable" to his country.

Israel has repeatedly warned that it believes Iran is pursuing nuclear weapons.

In Monday's address, Sarkozy said Israel is not alone. He said the entire European Union is concerned about Iran's nuclear program. He said if Iran develops nuclear weapons, it would be unacceptable to France.

Sarkozy has previously urged a diplomatic solution that would prevent what he says the "catastrophe" of either an Iranian bomb or an attack on Iran.

The EU is expected to announce sanctions against Iran's biggest bank. The move is aimed at stepping up international pressure on Tehran to bring its nuclear program in line with international demands.