Iran does not want to use oil as a weapon

Iranian President Mahmoud Ahmadinejad said Sunday that Iran never wanted to use oil as a weapon, but if the US attacked the country it would "know how to react."

"We would never want to use oil as a weapon or take any illegal actions," he told a press conference here, adding: "but if America takes any action against us we will know how to reply."

Fear that a US attack on Iran could lead the Islamic Republic to stop its oil exports or block key shipping channels for oil tankers in the Straits of Hormuz is one of the factors that has driven oil prices to record highs in recent years.

He predicted however that hostilities would not break out.

"My prediction is that no war will break in the region," he said. "Our assessment is that this region will not witness a war. There is no cause for concern ... America and its allies are incapable of launching a strike against us."

"If they (the US) commit a new mistake, all the region will become an unsavoury place for them. They will have no place in the region whatsoever," he added.

The Iranian president said the Gulf oil monarchies, among the region's closest US allies, will not assist any US war on his country.AFP