Iran will hit Tel Aviv, US shipping in the Gulf and American interests around the world if it is attacked over its disputed nuclear activities, an aide to Iran's Supreme Leader was quoted as saying yesterday.
"The first bullet fired by America at Iran will be followed by Iran burning down its vital interests around the globe," the students news agency ISNA quoted Ali Shirazi as saying in a speech to Revolutionary Guards.
The US and its allies suspect Iran is trying to build nuclear bombs. Tehran says its programme is peaceful.
French President Nicolas Sarkozy said major world powers had decided to send EU foreign policy chief Javier Solana to Iran for talks on an incentives package they offered last month to induce Tehran to change its nuclear policy.
Mr Sarkozy did not say when Mr Solana would travel to Tehran. Iran formally replied on Friday to the offer by the US, France, Britain, China, Russia and Germany.
France said Iran's response had ignored the world powers' demand for a suspension of uranium enrichment before talks on implementing the package - a condition rejected on Monday as "illegitimate" by Iranian President Mahmoud Ahmadinejad.
Mr Shirazi's comments intensified a war of words that has raised fears of military confrontation and helped boost world oil prices to record highs in recent weeks.
"The Zionist regime is pressuring White House officials to attack Iran. If they commit such a stupidity, Tel Aviv and US shipping in the Persian Gulf will be Iran's first targets and they will be burned," Mr Shirazi was quoted as saying.
Mr Shirazi, a mid-level cleric, is Supreme Leader Ayatollah Ali Khamenei's representative to the Revolutionary Guards.
In Jerusalem, Israeli Prime Minister Ehud Olmert's spokesman, Mark Regev, declined to comment on the threat to hit Tel Aviv, saying only: "Mr Shirazi's words speak for themselves".
Israel, believed to be the Middle East's only nuclear-armed power, has vowed to prevent Iran from acquiring an atomic bomb. The US says it wants to resolve the dispute by diplomacy but has not ruled out military action.
"I think it is very scary what they are saying," said Roy Katalan, holding his infant daughter in his arms on a Tel Aviv beach. "I think we should take him (Mr Shirazi) seriously."
The latest Iranian threats had little impact on financial markets in Israel. Italy's Foreign Minister Franco Frattini, on a visit to Jerusalem, told reporters a military assault on Iran would be a "catastrophe" and advocated a diplomatic solution.
Iran has threatened to close the Strait of Hormuz if it comes under attack. About 40 per cent of globally traded oil moves through the Gulf waterway.
The Revolutionary Guards' commander of artillery and missile units, Mahmoud Chaharbaghi, said 50 brigades of his forces had been equipped with what he called smart cluster munitions.
"All our arms, bullets and rockets are on alert" to defend Iranian territory, Hemayet daily quoted him as saying.
US and British naval forces wrapped up military exercises in the Gulf and said they were unrelated to tensions with Iran.