JERUSALEM (Reuters) - Israeli Prime Minister Ehud Olmert proposed in talks with a U.S. Congressional leader that a naval blockade be imposed on Iran to try to curb its nuclear program, an Israeli newspaper said on Wednesday The Haaretz daily quoted Olmert as telling Nancy Pelosi that "the present economic sanctions have exhausted themselves" and the international community needed to take more drastic steps to stop Iran's efforts to obtain nuclear weapons. A spokesman for Olmert declined to comment on the Israeli leader's talks on Monday with Pelosi, the speaker of the U.S. House of Representatives, in Jerusalem. "It was a confidential discussion," said the spokesman, Mark Regev.