Washington: IranianPresident Mahmoud Ahmadinejad has warned the US that any attack on his nationwill be 'severely punished'.

Ahmadinejad's comments come as rhetoric between the twocountries has heated up over US allegations that Iranis supporting attacks on USsoldiers in Iraqand is trying to build nuclear weapons.

 The White House stood by its accusations, saying US militarycommanders had conclusive 'direct physical evidence' that Iranian weapons hadbeen used by Shia militants against US soldiers.

But USPresident George W. Bush rejected suggestions by critics that hisadministration was trying to build a case for war, calling it 'political'speculation.

"I believe we still have the capacity to solve thisissue diplomatically because a lot of the world now understands the dangers of Iranhaving a nuclear weapon," Bush said to sources.

"We've got a comprehensive policy to solve thispeacefully," he said.

Bush called the Iranian government "belligerent, loud,noisy and threatening," adding that he hoped international sanctions andisolation would help moderate voices in the country come forward.

Ahmadinejad was asked in an interview on the US television network ABC whether he feared a USattack.

"Why should we be afraid? First, the possibility isvery low. And we think that there are wise people in the US who will stop such illegalactions," he said through a translator yesterday (Feb 12, 2007).

"But our position is clear. Our nation has made itclear that anyone who wants to attack our country will be severelypunished," he said.

USofficials Sunday released information they said proves that Iran has been funnelling weapons to militants inIraqresponsible for attacking US soldiers. Bush has said the US will take action in Iraq to protect its soldiers if Iranis found to have a hand in militant attacks.

"We're not getting ready for war on Iran, but what we are doing is we're protectingour own people," White House spokesman Tony Snow told reporters in Washington.

Ahmadinejad dodged questions about the allegations.

"We shy away from any kind of conflict, any kind ofbloodshed, and we will be sad by such news," he said.

"We're opposed to any kind of conflict or bloodshed,"he said.