UPDATE 2-Israel's Peres against any solo Iran attack, trusts Obama

* Peres remarks seen as challenge to Netanyahu

* Israeli president says Israel must work with U.S. on Iran

* Says he does not believe Israel will strike before

November

JERUSALEM, Aug 16 (Reuters) - Israeli President Shimon Peres

on Thursday came out against any go-it-alone Israeli attack on

Iran, saying he trusted U.S President Barack Obama's pledge to

prevent Tehran from producing nuclear weapons.

His comments appeared to challenge Prime Minister Benjamin

Netanyahu and Defence Minister Ehud Barak, who have both raised

the prospect of a unilateral Israeli strike, despite assurances

from Washington it will not let Iran get the atomic bomb.

"I am convinced this is an American interest. I am

convinced(Obama) recognises the American interest and he isn't

saying this just to keep us happy. I have no doubt about it,

after having had talks with him," Peres told Channel Two

television.

"Now, it's clear to us that we can't do it alone. We can

delay (Iran's nuclear programme). It's clear to us we have to

proceed together with America. There are questions about

coordination and timing, but as serious as the danger is, this

time at least we are not alone."

A flurry of comments by Israeli officials and media reports

over the past week have put financial markets on edge by

appearing to suggest an attack could be launched before the U.S.

presidential election in November.

An unidentified top "decision maker", widely believed to be

Barak, told Haaretz newspaper last Friday that Israel "cannot

place the responsibility for its security and future even in the

hands of its greatest ally", a reference to the United States.

Peres said in the interview that he did not believe Israel

would launch an attack on Iran before November.

As president, Peres, 89, has little political power in

Israel. But he has won the respect of many Israelis while

serving in the post and his opposition to any unilateral action

poses an additional challenge to Netanyahu.

A political source close to Netanyahu issued an angry

response to Peres' comments shortly after the president's

interview was aired.

"Peres has forgotten what the role of Israel's president is.

He has forgotten that he made three major mistakes in regard to

Israel's security ... his greatest mistake was in 1981 when he

thought bombing the reactor in Iraq was wrong and, to the

fortune of Israel's citizens, Prime Minister Begin ignored him,"

he said, speaking on the condition of anonymity.

In 1981 Israeli warplanes destroyed the Osirak nuclear

facility near Baghdad.

Israel's prime minister at the time, Menachem Begin, had

cautioned that a nuclear-armed Iraq under Saddam Hussein would

pose a threat to the existence of the Jewish state and ignored

then opposition leader Peres' warnings against the strike.

AMERICAN PRESSURE

At a news conference in Washington on Tuesday, U.S. Defense

Secretary Leon Panetta said it was important that military

action be the "last resort", adding that there was still time

for sanctions and diplomatic pressure to work.

"I don't believe they've made a decision as to whether or

not they will go in and attack Iran at this time," Panetta said.

During a visit to Jerusalem at the start of the month, he

made some of his strongest comments yet on curbing Tehran's

nuclear project. "We will not allow Iran to develop a nuclear

weapon. Period," he told reporters.

In parliament on Thursday, Barak said Israeli deliberations

on a course of action were continuing.

"There is a forum of nine (ministers), there is a (security)

cabinet, and a decision, when it is required, will be taken by

the Israeli government," Barak said.

"This doesn't mean there aren't differences. The issue is

complicated, but the issue is being deliberated," he added.

Israeli officials have told Reuters that the prime

minister's cabinet was split on the issue, while the top

military leadership was believed to be opposed to any mission

that did not have full U.S. support.

"Over the past several months, a wide-ranging and unbridled

public relations campaign has been conducted in Israel. Its only

aim has been to prepare the ground for premature operational

adventures," said opposition leader Shaul Mofaz, who pulled his

Kadima party out of the ruling coalition in July.

Iran rejects Israeli and Western allegations that its

nuclear programme is aimed at producing atomic weapons, and has

threatened wide-ranging reprisals if attacked - retaliation that

could draw the United States into the conflict.