Iranian President Mahmoud Ahmadinejad says his country will never back down from pursuing its nuclear ambitions.
In a speech on Monday in the Iranian city of Mashhad, Mr. Ahmadinejad also promised what he called "good news" on Iran's nuclear program in the next few days. He did not elaborate.
Meanwhile, President Bush says he wants to use diplomacy to prevent Iran from having the ability to develop nuclear weapons, although he says he has not ruled out a military option.
Mr. Bush used the words "wild speculation" to describe U.S. media reports on supposed plans for U.S. airstrikes on Iranian nuclear sites. He said having several countries raise the nuclear issue with Iran is the best course.
Mr. Ahmadinejad said the media reports are part of a U.S. campaign of "psychological warfare."
The Washington Post on Sunday quoted current and former U.S. defense officials as saying a Pentagon study of military options is part of a coercive diplomacy to get Iran to end its nuclear fuel program. The report also said no U.S. attack appears likely in the short term.
In a separate report citing unnamed sources, The New Yorker magazine said the Bush administration has increased clandestine activities inside Iran as well as planning for possible air strikes on nuclear facilities.
Washington accuses Iran of using its nuclear program as a cover for developing an atomic bomb -- a charge Tehran denies. Late last month, the U.N. Security Council ordered Iran to stop uranium enrichment.