Iran on Tuesday announced the end of a two-year suspension of nuclear fuel research, sparking condemnation from Europe, the United States and the United Nations amid concerns that Iran could be seeking to build an atomic bomb.
But Iranian President Mahmoud Ahmadinejad vowed Iran would not be intimidated by the international "fuss" and expressed hope atomic energy would soon "serve the progress" of the country.
"I am telling all the powers that the Iranian nation and government, with firmness and wisdom, will continue its path in seeking and utilizing peaceful nuclear energy," he told supporters in the southern city of Bandar Abbas.
"With wisdom we will get our rights, and if they create any trouble for us, they will regret it in the end, and Iran will emerge triumphant," said the head of the Expediency Council, Iran's top political arbitration body.
Mr Ahmadinejad added: "In the path of nuclear energy, we have started (nuclear fuel) research and God willing in the near future this energy in its entirety will serve the Iranian nation."
Iranian officials have made no secret of their intention to resume sensitive uranium enrichment operations in the future but Mr Ahmadinejad reiterated Iran's rejection of US allegations it was seeking nuclear weapons.
"Our nation does not need nuclear weapons, nor is interested in having them, and even considers them illegal," he said.
Iran had previously agreed to suspend uranium enrichment activities pending negotiations with the EU on economic and other incentives to renounce any nuclear weapons ambitions.
Britain, France and Germany, the so-called EU-3, have been trying to reopen talks suspended in August 2005 after Iran rejected an initial set of incentives to abandon uranium enrichment, which produces fuel for nuclear power reactors but can also be used to make atomic bombs.
European talks
The British and French foreign ministers are due to meet their German counterpart in Berlin on Thursday to discuss the next step in the escalating crisis between Tehran and the West.
Prime Minister Tony Blair told the British parliament Wednesday it "seems likely" that Iran will be referred to the UN Security Council, which could impose sanctions on Tehran.
"The first thing to do is to secure agreement for a reference to the Security Council, if that is indeed what the allies jointly decide, as I think seems likely," Mr Blair said.
EU foreign policy chief Javier Solana will also attend the Berlin talks, German Foreign Minister Frank-Walter Steinmeier told reporters. Afterwards, the participants will consult with US Secretary of State Condoleezza Rice by telephone, he added.
He said the purpose of the meeting was to decide whether there was still "political room to manoeuver" between the European troika and Iran.
The ministers could issue a "recommendation" on how to proceed, or file an official report to the Security Council, he said.
Iranian Foreign Minister Manouchehr Mottaki was quoted by state television as saying he hoped the Europeans would differentiate between nuclear fuel research and nuclear fuel production.
"It is expected that with a correct understanding, the Europeans with Russia, China and the non-aligned countries cooperation could manage the bilateral (Iran-EU) negotiations," he was quoted as saying.
Russian Defence Minister Sergei Ivanov called Iran's decision to resume its nuclear fuel program a "cause for alarm".
Russia has offered to enrich uranium jointly with Iran at a site on Russian territory -- a proposal generally supported by the West. But it says it is still awaiting a clear response from Tehran.
White House spokesman Scott McClellan said that if Iran breaches its international obligations, "there's no other choice" but to refer the matter to the Security Council.
President George W Bush's spokesman said the US leader has "made it pretty clear" that he has no plans to use military force against Iran, although "he never takes options off the table."