March 12 (Bloomberg) -- Admiral William Fallon's resignation as U.S. commander in the Middle East provoked criticism that President George W. Bush won't tolerate dissent and fed speculation his Iran policy could become more confrontational.

``Congress needs to determine immediately whether Admiral Fallon's resignation is another example of truth tellers being forced to the sidelines in the Bush administration,'' said Senator John Kerry, the Massachusetts Democrat who lost to Bush in the 2004 election. ``His departure must not clear the way for a rush to war with Iran.''

Defense Secretary Robert Gates announced that Fallon, 63, was resigning over perceived differences on Iran policy with the Bush administration as Fallon was starting an Iraq visit yesterday. Fallon will retire from the Navy at the end of March.

``Recent press reports suggesting a disconnect between my views and the president's policy objectives have become a distraction at a critical time and hamper efforts'' in his area of responsibility, known as Central Command, Fallon said in a statement.

Democratic presidential candidate Hillary Clinton, a U.S. senator from New York, called Fallon a ``sensible voice'' that supported ``engaging Iran.'' She urged her colleagues to back a bill requiring Bush to get congressional approval before taking any military action against Iran.

Republican Senator Chuck Hagel of Nebraska lamented Fallon's departure, saying in an interview with Bloomberg Television that he was ``very concerned to see him go.''

Esquire Article

Fallon's resignation came after publication of an article in Esquire magazine, written by Thomas P.M. Barnett, a former professor at the Naval War College in Newport, Rhode Island, that portrayed the admiral as the bulwark opposing a U.S. offensive against Iran.

``If, in the dying light of the Bush administration, we go to war with Iran, it'll come down to one man,'' Barnett wrote. ``If we do not go to war with Iran, it'll come down to the same man. He is that rarest of creatures in the Bush universe: the good cop on Iran, and a man of strategic brilliance.''

Barnett's article said Fallon might be ousted. Gates described as ``just ridiculous'' the idea raised in the article that if Fallon leaves, it may mean the U.S. is going to war with Iran.

Rice on Fallon

Today, Secretary of State Condoleezza Rice also rejected that speculation. ``Admiral Fallon has been a great public servant,'' Rice told reporters at the State Department. ``He has served his country well. I personally have enjoyed working with him.''

``As to the policy, I think you know that the president has made very clear that the United States believes that a diplomatic solution to the Iran issue is possible if the world stays strong and reacts in a unified way,'' Rice said.

Fallon said while he doesn't believe a policy rift exists, ``the simple perception that there is makes it difficult for me to effectively serve America's interests there.'' Gates said Fallon ``reached this difficult decision entirely on his own.''

A senior defense official said the Esquire article was the latest and most serious instance in which Fallon appeared to be partially out of step with the rest of the administration.

The official, who spoke with reporters on condition of anonymity, said the cumulative effect was to create a perception that Fallon was operating on his own -- even though his actual views weren't significantly different from those of others in the administration.

Fallon on Iran

In an interview last month in Doha, Qatar, Fallon said Iran continued to supply lethal aid and training to extremist militias in Iraq and said the U.S. was looking for ``a long-term change'' in Iranian behavior, echoing the administration's goals.

While the U.S. is pursuing a policy of diplomatic pressure on Iran at the United Nations and unilateral sanctions to weaken its access to the international banking system, the Bush administration hasn't ruled out military action as an option.

Still, Rice struck a conciliatory note last week when she spoke of incentives for Iran should it limit its nuclear work.

The U.S. persuaded the United Nations Security Council this month to approve expanded sanctions against Iran for its failure to suspend uranium enrichment under its nuclear program.

Lebanon, Pakistan, Oil

Fallon's area of responsibility stretches from Lebanon all the way to Afghanistan and Pakistan, with the oil-rich Persian Gulf countries in between. Vice President Dick Cheney travels next week to the Middle East to confront a host of challenges that include record oil prices of more than $108 a barrel, Lebanon in a political crisis and a U.S.-backed Israeli- Palestinian peace effort at a standstill.

The Esquire article wasn't the first to portray Fallon as out of step with the White House or with Army General David Petraeus, the top-ranking commander of U.S. forces in Iraq.

In September, the Washington Post reported that Petraeus and Fallon were privately split over whether a surge in troops in Iraq would have a long-term impact. Fallon once referred to tough White House rhetoric on Iran as ``not helpful and not useful.''

On March 7, Fallon's straight-talking tendencies came out in testimony to a House panel when he appeared to differ with administration policy on the PKK, the Kurdish militant group in northern Iraq that the U.S. and its ally Turkey define as terrorists.

Fallon said ``some kind of an accommodation'' needs to be reached with the group.

Bush, in a statement, said Fallon, a former naval aviator who went by his call sign ``Fox'' among friends, had served the U.S. ``with great distinction'' for 40 years. Fallon was the first Navy officer to head Central Command.

To contact the reporters on this story: Ken Fireman in Washington at kfireman1@bloomberg.net; Janine Zacharia in Washington at jzacharia@bloomberg.net

Last Updated: March 12, 2008 16:57 EDT