Iranian President Mahmoud Ahmadinejad said on Tuesday his country did not have to tell the United Nations nuclear agency about its plans to build nuclear sites unless it used imported technology.
"We are not obliged to inform the International Atomic Energy Agency about our plans to build nuclear sites unless the technology is imported," Ahmadinejad told state television.
The Iranian leader's comments came after the International Atomic Energy Agency said Tuesday that it would demand Tehran clarify its announcement made earlier this week regarding intentions to expand its uranium enrichment program.
Ahmadinejad added that international sanctions over the Islamic Republic's nuclear work would have no effect and any aggression against the Islamic state would be regretted.
"Sanctions will have no effect. Aggressors will regret their action as soon as they put their finger on the trigger," he said.
The United States said on Tuesday it prefers to continue what it called the "engagement route" but warned that it would "go down the second track" if Iran did not cooperate.
"We think that we've made some very good proposals that will address their concerns, and will help them reap some rewards for their own civilian nuclear program, reap rewards in the sense of greater cooperation, integration with the international community," said State Department spokesman Ian Kelly. "But if they continue not to give us a positive answer, then they'll leave us with no other choice but to go down the second track."
Kelly added that the U.S. is also concerned about Iran providing support to terrorist organizations.
"We do have concerns about Iran providing support - material support - to terrorists," said Kelly. "We have a number of sanctions in place already with Iran. And part of those sanctions addressed just this, the shipment of weapons out of Iran."
Kelly conitnued, "We're hoping that they will help us address these concerns...by engaging with us. We haven't closed the door on this engagement. But time is running out."
The IAEA board angered Iran last week when it censured it for covertly building a second uranium enrichment plant near the holy city of Qom, in addition to its main IAEA-monitored one at Natanz, and calling for a halt to construction.
Tehran said on Sunday it would build 10 more uranium enrichment sites in retaliation for the vote by the 35-nation board of the UN nuclear watchdog, which had rare Russian and Chinese backing.
Iran said on Tuesday it intended to take unspecified legal action over an IAEA rebuke of its nuclear activities and would provide Iranians with enough gasoline in order to trump any further UN sanctions.
"(Foreign Minister Manouchehr) Mottaki will declare the Islamic Republic's appreciation or opposition to the (position of) members of the governing body in separate letters," Foreign Ministry spokesman Ramin Mehmanparast said at a news conference reported in official news agency IRNA.
He said Iran would complain to the countries that supported the resolution but that it would not cause a change in Iran's relations with Russia and China, often seen as allies.
"We will confront the resolution legally," he said, according to student agency ISNA, without giving more details.
The United States and its allies fear Iran's nuclear energy program could allow the Islamic Republic to develop nuclear weapons, thought Tehran says it has no such intention.
Iran has resisted a deal with Western powers that would see its low-enriched uranium sent abroad for processing into uranium for making fuel.
Though Russia has said it was "seriously concerned" at the announcement of 10 planned new sites, it said this week it still planned to start up Iran's first nuclear power station in March.
"I don't think Russia will face any problem. That's what's agreed upon," Mehmanparast said, reiterating that "all our nuclear activities will be under IAEA supervision".
Western countries are threatening more UN sanctions on Iran which could targets its imports of gasoline. Though one of the world's biggest producers, Iran does not have refining capacity to meet current domestic demand.
Iran says it will expand its own production and plans to cut costly subsidies in a bid to reduce public consumption.
"Our plan is still being pursued, we must be on our own and provide our fuel ourselves," Mehmanparast said.