Iran is pressing on with uranium enrichment "non-stop", its envoy to the U.N. nuclear agency was quoted as saying on Saturday, despite a world powers' offer of economic incentives to coax Tehran into halting such activities.
The Islamic Republic also appeared to dismiss any suggestion of freezing nuclear work it says is for generating electricity but which the West suspects is aimed at making bombs.
Six major powers, including the United States, last week offered Iran help in developing a civilian nuclear programme and other benefits in their latest attempt to resolve a long-running row that has helped pushed oil prices to record highs.
Iran's chief nuclear negotiator said Tehran was ready to start negotiations "based on a win-win principle," the official IRNA news agency said. But it "will not bow to any illogical demands that would deprive it of its rights to continue with its peaceful nuclear activities," Saeed Jalili added.
The United States says it is focusing on diplomatic pressure to thwart Tehran's nuclear ambitions but has not ruled out military action as a last resort.
The New York Times on Friday quoted U.S. officials as saying Israel had carried out a large military exercise, apparently a rehearsal for a potential bombing of Iran's nuclear facilities.
The U.N. nuclear watchdog chief, Mohamad ElBaradei, the same day warned a military strike on Iran would turn the Middle East into a fireball.
Iranian government spokesman Gholamhossein Elham on Saturday branded Israel a "dangerous regime" but made clear his view it would not dare attack, when asked about the report.
Diplomats said on Friday the six powers had offered Iran preliminary talks on its nuclear programme, on condition it limit enrichment to current levels for six weeks in exchange for a freeze on moves towards harsher sanctions.
They said European Union foreign policy chief Javier Solana conveyed the proposal during talks in Tehran on June 14 in which he presented a revised batch of incentives for Iran to stop pursuing technology that could yield atomic weapons.
