Iran said Monday a US threat to form an independent coalition to impose sanctions if the UN Security Council failed to act over Teheran's nuclear program was an insult to the council's work.

The Los Angeles Times reported on Saturday that the US Ambassador to the United Nations, John Bolton, had indicated Washington was prepared to act independently with allies to freeze Iranian assets and restrict trade if the council did not.

The United States has previously called for a swift response if Iran does not heed the Security Council's Thursday deadline to halt uranium enrichment, a process that can make fuel for reactors or material for warheads.

"These remarks (by Bolton) are an obvious insult to the Security Council," Iranian Government spokesman Gholamhossein Elham told a weekly news conference.

"These remarks are just bullying and baseless remarks and show that they (the US) are not competent to be a member of the Security Council."

The LA Times said Washington planned to introduce a resolution imposing penalties soon after the August 31 deadline if Iran's position did not change.

Analysts say opposition from veto-wielding powers Russia and China could delay any move.

Iran has so far shown no sign it will halt enriching uranium, which the West says Iran is using to build atomic bombs, a charge Teheran denies.

"The Islamic Republic has repeatedly announced that using nuclear weapons is not in our defence policies," Elham said.

Bolton said Washington was working on a parallel diplomatic track outside the United Nations if Russia and China did not accept the resolution, the LA Times reported. "You don't need Security Council authority to impose sanctions, just as we have," Bolton was quoted as saying.

The United States has had broad restrictions on almost all trade with Iran since 1987.

French President Jacques Chirac urged Iran to reassure the world about its intentions. "Once again, I urge Teheran to send the necessary signals to create the conditions for trust. There is always room for dialogue," Chirac said in a speech Monday.

(China Daily August 29, 2006)