Washington  - US secretary of state-designate Hillary Clinton said Tuesday the incoming Obama administration will employ "smart power" to pursue US objectives in the world like resolving the Israeli-Palestinian conflict and curtailing Iran's nuclear ambitions.

Speaking before the Senate Foreign Relations Committee during her confirmation hearing, Clinton said the United States must use its diplomatic, economic and military power to promote international security and tackle challenges abroad.

"With smart power, diplomacy will be the vanguard of our foreign policy," Clinton told senators.

Seeking to distance the Obama administration from President George W Bush's policies, Clinton said Washington must take a more realistic approach to the world rather than relying solely on ideology.

"Foreign policy must be based on a marriage of principles and pragmatism, not rigid ideology," she said.

Clinton, 61, was making her first appearance before the Senate Foreign Relations Committee since Obama chose his former presidential rival to head the State Department. Clinton's nomination is expected to clear Congress' upper chamber and a full vote could take place by the time Obama in sworn into office next Tuesday.

Clinton said she and Obama are committing to advancing the Middle East peace process while deploring the human suffering caused by the conflict and ongoing fighting in the Gaza Strip, but remain committed to Israel's right to self-defence.

"The president-elect and I understand and are deeply sympathetic to Israel's desire to defend itself under the current conditions and to be free of shelling by Hamas rockets," Clinton said. "However, we have also been reminded of the tragic humanitarian costs of conflict in the Middle East and paid by the suffering of Palestinian and Israeli civilians."

"This must only increase our determination to seek a just and lasting peace agreement that brings real security to Israel, normal and positive relations with its neighbours," she said.

Clinton did not rule out the possible use of military force to confront Iran's nuclear ambitions but said that she will pursue a "new approach" of engaging Teheran to peacefully resolve the dispute.

The United States will work closely on the diplomatic front and through the United Nations and the use of sanctions to persuade Iran to come clean about its nuclear activities and ensure the Islamic republic abandons any effort to acquire a nuclear weapon capability.

"We are not taking any option off the table at all, but we will pursue a new, perhaps different approach that will become a cornerstone of what the Obama administration believes is an attitude toward engagement that might bear fruit," she said.

Clinton also said the United States will step up pressure on Security Council members like Russia and China who have been reluctant to back stronger measures to punish Iran for its refusal to comply with UN demands to suspend uranium enrichment.

"We're going to be making the case to members of the Security Council, who have been either dubious or unwilling to cooperate up until now, that a nuclear-armed Iran is in no one's interests under any circumstances," she said.

Clinton said the Obama administration will work to strengthen relations with key powers in the Middle East like Egypt, Jordan and Saudi Arabia to promote security in the region.

The Bush administration had refused to rule out military force in dealing with Iran's nuclear ambitions, but at the same time focused on diplomatic pressure by working with Britain, France and Germany and on the Security Council.

During the campaign, Obama pledged to step up direct diplomatic contacts with Iran to persuade the Islamic state to abandon is suspected effort to acquire a nuclear weapons capability.

Clinton said the administration will wait until taking office to evaluate the situation and whether to proceed with direct talks. The Bush administration refused to hold direct discussions with Iran, allowing EU foreign policy chief Javier Solana to lead negotiations.

"I want to wait to determine the exact contours of how we proceed until we are actually in office and have a chance to consult with others," Clinton said.

The New York senator and former first lady's nomination as the top US diplomat brings a familiar face to the world at a time when the Obama administration, which takes power January 20, seeks to rebuild the US image in the world after eight years of Bush's unpopular policies.

Clinton's nomination, however, required that her husband, former president Bill Clinton, disclose all of his fundraising activities around the world for his charity causes at the Clinton Foundation.

Republican Senator Richard Lugar said he backed her nomination but urged the Clintons to ensure they go great lengths to ensure contribution are publicly released and that no money is accepted from foreign governments.

"The Clinton Foundation exists as a temptation for any foreign entity or government that believes it could curry favor through a donation," Lugar said. "It also sets up potential perception problems with any action taken by the secretary of state in relation to foreign givers or their countries." (dpa)