The United States has played down a threat from Iran's supreme leader to disrupt world oil supplies if America made what he called a 'wrong move' towards his country.
In a televised speech, Ayatollah Khamenei said accusations that Iran intended to make a nuclear bomb amounted to a 'sheer lie'.
Responding, the US Secretary of State Condoleezza Rice dismissed the threat, saying it would be a serious problem for Iran if oil were disrupted on the market.
Meanwhile, the Iranian president, Mahmoud Ahmadinejad, has said he will consider proposals from six world powers to end the dispute over Tehran’s nuclear ambitions.
However, he has ruled out an end to uranium enrichment and said there could be no negotiation over what he called Iran’s legitimate and legal right to produce nuclear fuel.
The proposals are due to be delivered by a top European official within days.
