President Mahmoud Ahmadinejad said on Tuesday that any country which tried to impose new sanctions on Iran would regret its actions, and talks were still going on over a proposed nuclear fuel swap.
Ahmadinejad's latest salvo at world powers came as U.S. Secretary of State Hillary Clinton toured the Gulf to earn backing for possible sanctions against Iran for defiantly pursuing its nuclear program.
"If anybody seeks to create problems for Iran, our response will not be like before," the hard-line Iranian president told a packed news conference in the capital Tehran.
Of course, if somebody acts against Iran our response will definitely be firm enough ... to make them regretfu
Clinton said a new round of sanctions should target Iran's Revolutionary Guards, which she said were driving the Islamic Republic towards a military dictatorship.
"Of course, if somebody acts against Iran our response will definitely be firm enough ... (to) make them regretful," Ahmadinejad said without elaborating.
"Sanctions will not harm Iran," he added.
Nuclear swap still possible
Ahmadinejad also said talks were still under way on a proposed nuclear fuel swap and the issue was not yet closed.
Western powers had hoped the proposal, brokered by the International Atomic Energy Agency, would result in Iran sending most of its low-enriched uranium abroad for processing, and ease their concerns that it might build a nuclear bomb. Tehran says its nuclear program is solely to generate electricity so it can export more of its oil and gas.
"There are some talks under way over the nuclear fuel swap," he told a televised news conference, without giving details. "The case is not yet closed ... we have already announced that we are ready for a fuel exchange within a fair framework."
He added: "We are still ready for an exchange, even with America."
Ahmadinejad's order last week to start production of higher-grade uranium, rather than agree to the U.N.-brokered fuel swap proposal, exposes Tehran to new calls for U.N. sanctions from Western powers.
The Kremlin said on Tuesday Iran could face sanctions if it failed to allay international fears about its nuclear program, and Israeli Prime Minister Benjamin Netanyahu, on a visit to Moscow, called for "paralyzing sanctions" on Iran.
Ahmadinejad said Iran had been willing to send its uranium abroad rather than enrich it further at home. "But ... we found that there is no goodwill in this regard and we told them that if they don't provide us (with the fuel) in due time we would start work inside (Iran)."
"And even now, if they provide us with the necessary fuel the conditions will be changed," Ahmadinejad said.
Clinton wrapped up a Gulf tour on Tuesday satisfied that Saudi Arabia is tilting toward a U.S.-led drive to impose tough new U.N. sanctions against Iran.
The chief U.S. diplomat's tour of Qatar and Saudi Arabia appeared aimed at isolating Iran from its Gulf neighbors and piling pressure on China to drop its resistance to sanctions targeted in particular at Iran's Revolutionary Guard.
President Barack Obama has launched a wave of high-stakes U.S. diplomacy in the Middle East as Washington seeks to ratchet up pressure on Iran over its nuclear program.
In strikingly forceful language, Clinton said Iran is turning into a "military dictatorship" bent on acquiring nuclear weapons as the Revolutionary Guard begins "supplanting" the clerical and political leadership in Tehran.
In a press conference in the Saudi capital Riyadh, Clinton urged the traditional leadership to take back the reins of authority from the Guard, which she says heads the Iranian nuclear and missile programs.
"Immediate resolution"
We see the issue in the shorter term because we are closer to the threat...We need an immediate resolution
Seated next to Clinton on her first visit to the kingdom, Saudi Foreign Minister Saud al-Faisal called the chief U.S. diplomat a good "prognosticator," adding he was inclined to believe her warnings on the Revolutionary Guard.
He said that "sanctions are a long-term solution. They may work. We can't judge."
However, Prince Saud added: "We see the issue in the shorter term because we are closer to the threat...We need an immediate resolution."
It was not immediately clear whether Saud, who was speaking in English, was calling for an immediate U.N. Security Council sanctions resolution or some other kind of resolution to the perceived threat from Iran.
The prince meanwhile played down suggestions that Riyadh could encourage Beijing not to block sanctions against Tehran by guaranteeing Beijing stable oil supplies in the event of disruption from Iran.
However, he appeared to say China would anyway go along with the international community when he said Beijing "carries its responsibilities" within the U.N. Security Council "very seriously.
China, which invests heavily in and imports much oil from Iran, remains the sole holdout against sanctions in the council -- where Russia is now leaning toward backing punitive measures with the United States, France and Britain.
Mideast peace process
I'm hopeful that this year will see the commencement of serious negotiations
Clinton spoke in Riyadh after holding around four hours of private talks with King Abdullah bin Abdul Aziz at his desert camp 60 miles (100 kilometers) northeast of Riyadh, aiming to rally support for tough new U.N. sanctions against Iran.
Saudi leaders also raised the Middle East peace process in their talks with Clinton amid growing frustration with the failure of U.S. efforts to secure a re-launch of talks.
Israeli-Palestinian negotiations have been frozen since Israel launched its devastating offensive against Gaza in December 2008.
"The peace process is the main issue, of course," said Saudi foreign ministry spokesman Osama Nugali. "Our position is still the same ... that we need to revive the peace process."
In Qatar earlier Monday, Clinton said she was optimistic that talks would resume this year. "I'm hopeful that this year will see the commencement of serious negotiations," she said.
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