Anyone placing sanctions on Iran would be "regretful", President Mahmoud Ahmadinejad said on Tuesday. Earlier Russia had indicated it considered sanctions against Iran were still an option if Iran did not co-operate with the UN's nuclear watchdog.
But Mr Ahmadinejad said talks were still under way and possibility for agreement "was not closed".
He also attacked the US Secretary of State for suggesting Iran is becoming a military dictatorship.
"If anyone does anything against Iran, then our response won't be the same as in the past. No, we will definitely react and make them regretful," the president told a televised press conference.
Earlier the Saudi Foreign Minister indicated his country would prefer a "more immediate solution" to the situation rather than slow-acting sanctions, but did not elaborate.
In an interview with the BBC's Kim Ghattas, US Secretary of State Hillary Clinton appealed indirectly to the Iranian people not to let their country become a military dictatorship.
"You can be adversarial towards the US but still not want to see your country with its history and culture heading in that direction," she said.
Mrs Clinton's words appear to suggest that the Obama administration is seeking to exploit divisions inside Iran, says our correspondent.
Source: BBC
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