U.S. Secretary of State Condoleezza Rice responded to Iran's declaration that it had no "reverse gear" on its nuclear program by saying on Sunday that what Iran needed was a "stop button" to do was halt weapons-related activities.

Rice said if Tehran did so, the United States was prepared to discussed trade and political issues, and she would be willing to meet her Iranian counterpart.

"They don't need a reverse gear. They need a stop button," Rice said on "Fox News Sunday."

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"Iran has obtained the technology to produce nuclear fuel and Iran's move is like a train ... which has no brake and no reverse gear," Ahmadinejad said on Sunday, ISNA news agency reported.

Meanwhile, an Iranian deputy foreign minister vowed Tehran was prepared for any eventuality over its nuclear program, "even for war."

Iran ignored last week's United Nations deadline to halt uranium enrichment, a process that can be used to make fuel for power plants or material for warheads. Tehran says it wants a deal but rules out the West's key demand that it suspend the atomic work.

The United States, which accuses the Islamic Republic of wanting nuclear weapons, says it wants a diplomatic solution to the row but has not ruled out military action if needed.

U.S. Vice President Dick Cheney said on Saturday Iran's atomic ambitions must be curbed and said "all options" were on the table.

"We have prepared ourselves for any situation, even for war," Manouchehr Mohammadi, one of the foreign minister's deputies, was quoted by ISNA as saying. Iran says it wants only to generate nuclear power.

Iranian military commanders have said recent war games, the latest of which involved testing several missiles this month, show Iran's readiness to counter any attack.

Iran's chief nuclear negotiator Ali Larijani was quoted by the official IRNA news agency as saying on a trip to South Africa that Tehran would react "proportionately" to any further pressure and it wanted more talks.

"Iran is ready to resolve existing differences over its nuclear program through fruitful and careful negotiations," he said. He urged Security Council members due to meet in London in the coming days not to continue their "hostile behavior".

Officials from the council plus Germany are to meet in London to consider possible further steps against Iran.

UN sanctions were slapped on Iran in December, barring the transfer of technology and know-how to the country's nuclear and missile program. That resolution said further measures could follow if Iran refused to halt enrichment by February 21.

Cheney said during a visit to Australia that it would be a "serious mistake" to allow Iran to become a nuclear power. An Australian newspaper said Cheney also endorsed comments by U.S. Republican Senator John McCain that the only thing worse than a military confrontation with Iran would be a nuclear-armed Iran.

To step up pressure on Tehran, Washington has imposed sanctions on two big Iranian banks and three firms, and has sent a second aircraft carrier in the Gulf.

Iran has brushed off the moves and said Washington was not in a position to attack Iran because it is still bogged down in a military campaign in Iraq. U.S. officials accuse Iran of stirring up trouble in Iraq despite Tehran's denials.

A senior Iranian aerospace official said the country had successfully launched a missile capable of reaching space, the state TV Web site reported, although it gave few details.

The technology to launch a missile into space can be used to build intercontinental ballistic missiles. Tehran says its longest range missile now can hit targets 2,000 km away.

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