The Islamic regime has always denied in recent years trying to arm itself with an atomic bomb, saying its nuclear program was a peaceful, civilian effort to meet its electricity needs.
But Bush in an interview with a US-controlled Farsi-language radio station said Iran has declared it wants nuclear weapons "to destroy people."
Bush told Radio Farda, which broadcasts from Europe to Iran, that he supported Iran developing a civilian nuclear power program.
"It's in their right to have it," Bush said, according to a White House transcript of the interview made on Wednesday.
"The problem is the government cannot be trusted to enrich uranium because one, they've hidden programs in the past and they may be hiding one now, who knows; and secondly, they've declared they want to have a nuclear weapon to destroy people -- some in the Middle East."
The White House on Friday sought to downplay the remarks, saying Bush was merely speaking in shorthand.
"The president shorthanded his answer with regard to Iran's previously secret nuclear weapons program and their current enrichment and ballistic missile testing," said national security spokesman Gordon Johndroe.