Blair warns Iran over nuclear aims
But the Prime Minister insisted military action was "not on our agenda", adding that he remained confident of a peaceful resolution to the issue.
Mr Blair was speaking at his biennial meeting with the Commons Liaison Committee, and was discussing the growing international concerns over Iran's nuclear ambitions.
The International Atomic Energy Agency's board this weekend voted 27-3 to refer a complaint about Iran's resumption of banned nuclear work to the UN Security Council.
Mr Blair said the rhetoric from Iran's President Mahmoud Ahmadinejad "enhances people's concern" about the issue, and refused to rule out military action.
"It is interesting that over the past few months there has been a change of mood in Europe as well as in the United States," he said.
"Iran would make a very, very serious mistake if it thinks the international community is going to allow it to develop nuclear weapons capability.
"You can never say never in any of these situations but at the same time I have made clear we are trying to resolve this by peaceful and diplomatic means.
"The concern about Iran is growing very, very substantially.
"And the more the President of Iran carries on using this type of language and saying what he says about the state of Israel the more people get worried that the timeline between political change in Iran and their development of nuclear weapons capability gets out of kilter." Read more
db: Not on the agenda - but "you can never say never"
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