Kuala Lumpur: Iranian President Mohammad Khatami on July 23 accused the United States of steering the world along a "frightening" path towards war in its fight against terrorism.

Speaking at a news conference on the second day of a visit to Malaysia, Khatami also condemned plans for US military action against Iraq to oust President Saddam Hussein.

"We live in a very frightening situation today. In the course of world history, we have never witnessed war being promoted so much," he said.

"Even in the course of the two world wars and the very difficult era of the Cold War, never has such an environment of war been created in the world by the US and the US administration."

In an address at Malaysia's Institute of Strategic and International Studies, the Iranian President later cautioned "the great powers against further interference in the affairs of (the Middle East) and against the exacerbation of the flames of war".

"When you look at the Middle East situation, you see that the most oppressive and cruel government in the world -- Israel -- is being supported by the US and the US has remained alone in its support of Israel.

"If the US wants to live in a peaceful environment minus threats of terrorism it has to eradicate poverty and discrimination and promote equality and justice."

US President George Bush has named Iran as part of an "axis of evil" along with Iraq and North Korea, but Khatami told the news conference, "Iran has never trodden on the path of evil".

He said, "Evilness is terrorism, it is war, humiliation and insult. It is occupying other people's land and displacing them, evilness is to accept democracy in some parts of the world and deny it in others."

While terrorism was a "very horrendous and dangerous phenomenon", US behaviour in the aftermath of last September's terror attacks was misguided, Khatami said.

"The behaviour of the US today is neither in the interest of the US nor of the world, today there are great threats against various nations and governments initiated by the US administration and in the long term, this is a concern to all of us."

Referring to the threat of a US attack on Iraq, Khatami urged Washington to accept that other nations have a right to choose their own paths.

He said Iran had fought an eight-year war with Iraq and believed Baghdad should abide by UN Security Council resolutions and by world public opinion.

"But at the same time, we condemn any foreign interference in Iraq and we recognise their sovereign integrity. No one has the right to decide for the people of Iraq, they should decide for themselves."