Brdo, Slovenia - The European Union and the United States agreed to tighten the squeeze on Iran's financial links to disrupt its alleged support of terrorism and nuclear proliferation, according to a draft statement at an EU-US summit Tuesday. US President George W Bush and top EU officials renewed a demand for Iran to verifiably suspend uranium enrichment, warning that "we are ready to supplement (UN) sanctions with additional measures," the document said.

Both sides would work together "to take steps to ensure Iranian banks cannot abuse the international banking system to support proliferation and terrorism," said the draft obtained by Deutsche Presse-Agentur dpa.

EU Commission President Jose Manuel Barroso and Bush were scheduled to announce the summit results later Tuesday after the talks at a secluded castle in Slovenia, which holds the rotating EU presidency.