Iran Remains Belligerent

"If we show weakness in front of the enemy the expectations will increase but if we stand against them, because of this resistance, they will retreat," Ahmadinejad said in a speech in northern Iran, Iran's ISNA news agency reported.

The president added that in the past, when Iran has compromised over a nuclear program it insists has only peaceful aims, the West had simply increased its demands.

Ahmadinejad was following up his recent announcement that Iran would only halt its nuclear fuel work if those making such demands did the same. The offer was immediately rejected by the United States.

Iran continues enrichment past deadline

The UN Security Council had given Iran until Feb. 21 to halt its uranium enrichment process, which the west believes is being used to develop a nuclear weapon under the pretence of a civil atomic power program, and announced on Thursday that Tehran had failed to comply.

Iran previously suspended uranium enrichment under an agreement with the European Union but that broke down in 2005.

The report issued Thursday by the UN nuclear watchdog IAEA stated that Iran had installed two cascades, or networks, of 164 centrifuges in its underground Natanz enrichment plant with another two cascades close to completion. Centrifuges spin at high speeds to enrich uranium. Far from halting enrichment, the report claimed that Iran was actually increasing its enrichment efforts.

The Iranian president is not the highest authority in the Islamic Republic but he does boast a large following, mainly with disgruntled members of the populace who feed of his populist speeches and "man of the people" persona. However, his most recent comments echo those of Supreme Leader Ayatollah Ali Khamenei who has said that Iran would press ahead with its nuclear ambitions irrespective of international pressure.

Ex-President warns West -- and Iranian extremists

Ahmadinejad's comments were reinforced by former President Akbar Hashemi Rafsanjani in his Friday prayers sermon on state radio. "They will not get a result from this way; it will just make problems for themselves, the world and especially our region." Rafsanjani said, referring to the West's threats over Iran's nuclear ambitions.

But the ex-president also included a veiled reference to Ahmadinejad and his anti-Western rhetoric which those in the more moderate camp of Iranian politicians, Rafsanjani included, blame for the deteriorating relations with increasingly suspicious Western nations.

"We should keep our unity," Rafsanjani said. "Extremist people should control their tongue because these days simple statements can also bring danger to the Islamic nation."

Iran's latest rebuttal of UN demands is likely to increase pressure within the UN Security Council to take further action in addition to the sanctions barring the transfer of nuclear technology and know-how that were imposed in December last year.

Security Council faces divisions over next step

The five permanent members of the Security Council plus Germany will meet in London next week to discuss what measures are to follow.

The Security Council faces a hard task finding a consensus as the United States continues to favor a harder stance while Russia, China and some EU powers prefer further dialogue with Iran in contrast to Washington's willingness to isolate and punish Tehran.

The United States has stepped up pressure on Iran to stop its atomic work by slapping its own sanctions on two big Iranian state banks and three companies it says are associated with nuclear proliferation.
It has also issued military warnings such as the deployment of a second aircraft carrier and supporting warships to the Gulf. Washington insists it wants a diplomatic solution and does not want to escalate the row into a conflict, but has not ruled out force if necessary.

The Security Council may consider issuing a travel ban on senior Iranian officials and restrictions on non-nuclear business.