Clinton says Iraq must live up to its obligations to the United Nations  ALSO: U.S. was 'poised' to strike Iraq Caution, optimism mark world reaction to Iraq announcement Clinton's statement on Iraq UNSCOM official frustrated with access in Iraq

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• Clinton: Military threat worked
• Security Council to meet
• Iraqi letters caused confusion
• Related stories and sites

WASHINGTON (CNN) -- Defusing the threat of imminent military intervention in the Gulf, U.S. President Bill Clinton said Sunday that Washington has accepted Iraq's agreement to allow the unconditional return of U.N. weapons inspectors to Baghdad.

But he warned Iraq that the United States remained "ready to act" should there be any further defiance over weapons inspections.

Clinton's statement came less than 24 hours after Iraq sent several letters to the United Nations, stating that it was now ready to resume cooperation with international disarmament experts and allow the resumption of U.N. weapons inspections.

"The only path forward is complete compliance with its obligations to the world," Clinton said. "Until we see complete compliance, we will remain vigilant, we will keep up the pressure, we will be ready to act."

Baghdad's about-face came amid reports that Clinton had already authorized a military strike to punish Iraq for its October 31 ban on all U.N. inspections.

"Let me be clear," Clinton said. "Iraq has backed down, but that is not enough. Now Iraq must live up to its obligations."

Among those obligations, Clinton said, Iraq must:

• Resolve all outstanding issues raised by the U.N. Special Commission (UNSCOM) and International Atomic Energy Agency.

• Agree to unfettered access for the teams to inspect and monitor all sites they choose.

• Turn over to the United Nations all relevant disarmament documents.

• Accept all U.N. resolutions related to weapons of mass destruction.

• Not interfere with the U.N. inspectors in any way.

Clinton acknowledged the deep skepticism regarding Iraqi President Saddam Hussein's promises, but he argued that holding back from a military strike was a better long-term strategy.

"If we take military action, we can significantly degrade Saddam Hussein's ability to develop weapons of mass destruction and to deliver them," Clinton said. "But that would also mark the end of UNSCOM." UNSCOM is responsible for dismantling Iraq's weapons of mass destruction.

A British Tornado fighter-bomber at the Ali Al Salem airbase near Kuwait City
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Clinton also referred to the military resolve of Britain, Washington's closest ally in the latest Gulf crisis, as well as its other allies in the world.

"Our willingness to strike, together with the overwhelming weight of world opinion, produced the outcome we preferred -- Saddam Hussein reversing course," Clinton said. "The return of the inspectors, if they can operate in an unfettered way, is the best outcome."

U.S. Defense Secretary William Cohen, joining Clinton, said U.S. forces deployed in the Gulf would remain ready to "act at a moment's notice" should that be considered necessary.

Pentagon officials told CNN that a military strike had been given the go-ahead when Iraq's about-face led Clinton to abort the mission.

Earlier Sunday, British Prime Minister Tony Blair also issued a stern warning to Iraq.

"This is not over until absolute and unconditional compliance is guaranteed and delivered. Until that, we remain on alert," Blair told reporters outside his Downing Street office.

Butler awaits Security Council approval to return UNSCOM to Iraq
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U.N. Secretary-General Kofi Annan, who defused a previous crisis with Iraq in February, welcomed Clinton's response to Iraq as a "statesman-like message."

Referring to Iraq's latest cooperation pledge, Annan said he hoped that, this time around, "we will have sustained cooperation (from Iraq) ... because all the (Security Council) member states do not appreciate these periodic crises and would want to see sustained cooperation with U.N. weapons inspectors."

The U.N. Security Council was expected to meet Sunday to continue discussing Iraq's cooperation pledge and the latest developments.

UNSCOM chief Richard Butler said the inspection teams could return to Iraq within 24 hours of Security Council approval. The teams were withdrawn to Bahrain during the latest crisis.

Speaking in an interview with CNN, Butler said the time frame for completing U.N. weapons inspections depended on how quickly the Iraqi authorities would hand over the remaining relevant disarmament data.

A letter in Arabic from Hamdoon to the United Nations

Iraq's change of heart regarding the weapons inspections came Saturday in a series of three letters to the United Nations. But those letters led to some initial confusion.

The initial Iraqi letter, addressed to Annan, said U.N. inspectors could resume their work, but it also linked cooperation with "a further chance to achieve justice by lifting sanctions" imposed on Iraq after its 1990 invasion of Kuwait.

Later, Iraq submitted two additional letters, each of which apparently sought to convey that Hussein would allow U.N. weapons inspectors to resume "all their activities" under U.N. resolutions without condition.

Security Council members had been divided over Iraq's initial response when the body met for a first round of discussion on Saturday: The Iraqi letter was welcomed by France, Russia and China as the council began meeting late Saturday. The United States was the only member to reject it outright, and Britain said it was skeptical.

White House Correspondents John King and Eileen O'Connor, Correspondents Christiane Amanpour, Richard Roth, Jamie McIntyre and Reuters contributed to this report.