US planes will now be allowed to use central Asian bases
Mr Powell said he was "very pleased" with Russian President Vladimir Putin's offer to widen cooperation in the fight against terrorism.
Click here to see a map of bases the US might use
US Secretary of State Colin Powell said anything which could weaken the Taleban would be helpful.
In a further boost to American diplomacy, Saudi Arabia announced on Tuesday that it was breaking off relations with the Taleban, in a
statement released by the official SPA news agency.
The United Arab Emirates broke off relations three days ago.
This leaves Pakistan as the only country that still recognises the regime in Afghanistan.
More arms
President Putin has further increased the pressure on the Taleban by saying that Russia would offer more arms and other supplies to the Northern Alliance, the group fighting the Taleban in northern Afghanistan.
For its part, the US administration has moved to cut off the flow of money to Osama Bin Laden, his al-Qaeda network and other groups it suspects of involvement in terrorism.
President Bush announced he had signed an executive order freezing the US assets of 27 individuals and organisations, as the country prepares for military action in response to the suicide attacks on New York and Washington.
In other developments:
Russia's offer
The BBC's correspondent in Moscow, Caroline Wyatt, says Mr Putin's most important offer to the US was to allow it and its allies to use former Soviet airbases in the countries surrounding Afghanistan.
Mr Putin said that those states, including Uzbekistan, Tajikistan and Turkmenistan, shared Russia's position.
And Russia will offer further pooling of intelligence, the president said, prior to leaving on a visit to Germany on Tuesday.
Before outlining his plan, Mr Putin held marathon meetings with his top security, defence and intelligence chiefs and met with leading parliament members.
One liberal parliament member was quoted by the Reuters news agency as saying that the president has ruled out sending troops into Afghanistan, where the Soviet Union had lost 15,000 soldiers in the 1980s.
Mr Putin also spoke on the phone to the presidents of the five central Asian nations, and met with a group of Russia's Islamic leaders.
Opening shot
In Washington, Mr Bush described his executive order as a "strike on the financial foundation of the global terror network," saying this was the opening shot of a war against terrorism that would be waged on several fronts.
"Money is the life-blood of terrorist operations," the president said during a news conference in the White House Rose Garden. "Today, we're asking the world to stop payment."
US Attorney General John Ashcroft has meanwhile confirmed that one of the suspects recently arrested in connection to the attacks on New York and Washington had sought data on using a crop-dusting plane.
This has raised concern that militants have also been planning an airborne chemical attack in the US.
As part of the heightened state of security in the US, federal aviation officials said they were considering banning carry-on baggage and early seat selection.
Two-thirds of the major cities in the US are planning to revise their emergency procedures in the light of the 11 September attacks, according to a report published on Monday.
Related to this story:
US to produce Bin Laden evidence
(24 Sep 01 | Americas)
Who is Osama Bin Laden?
(18 Sep 01 | South Asia)
Terror attacks shares probe
(22 Sep 01 | Business)
Following the money trail
(19 Sep 01 | Business)
Will Bush's asset freeze work?
(24 Sep 01 | Business)
Analysis: Building a coalition
(16 Sep 01 | Americas)
A significant step for Russia
(25 Sep 01 | Europe)
Internet links:
White House |
US Treasury |
The BBC is not responsible for the content of external internet sites