May 1, 2002

TEHRAN, Iran (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei launched a tirade against the United States Wednesday, accusing Washington of bullying and ruling out holding any talks with Washington.

"The Islamic Republic of Iran will never succumb to America's bullying," state television showed Khamenei telling a meeting of teachers and workers in Tehran who responded with chants of "Death to America, Death to Israel."

Khamenei holds all the key elements of power in Iran. His remarks follow repeated U.S. denunciations of Iran as part of an "axis of evil" for allegedly pursuing weapons of mass destruction and supporting terrorism -- charges Iran strongly denies.

Since President Bush's first used the term "axis of evil" in a speech three months ago, Tehran has buzzed with rumors of secret meetings between Iranian and U.S. officials and even talk of a special commission set up by Khamenei to pursue dialogue.

But the supreme leader ruled out any such talks.

"No, negotiations will not solve any problem," he said. "Negotiations with America are beneficial to the American government. With negotiations, they will find a place to impose their demands.'

Khamenei repeated his call for an oil embargo against Israel and its allies in support of the Palestinian uprising.

"A one-month oil embargo is a principled and serious issue," said the bearded and bespectacled 63-year-old cleric. "(It) will show that Islamic and Arab countries have the ability to confront and take action against international dictatorship."

Opposition to Israel is one of the cornerstones of belief of the Islamic Republic, which backs Palestinian and Lebanese Islamic militant groups opposed to peace with the Jewish state.

Khamenei praised suicide bombers who have claimed dozens of Israeli lives in the two-year Palestinian Intifada, or uprising.

"Palestinians are standing up to the pressures on them and the height of their resistance is manifested in their martyrdom- seeking operations which make the enemy tremble," Khamenei said.

"Sacrificing oneself for religion and national interest is the peak of honor and bravery."

Reformers close to President Mohammad Khatami steer clear of outright backing for suicide attacks and some, apparently prompted by the U.S. accusations, have called for talks with the United States to diffuse the tension.

"If the United States does not set any preconditions for starting dialogue ... isn't it a clever move to talk with peace-seeking U.S. parliamentarians who do not consider Iran part of an 'axis of evil,"' the Bonyan newspaper quoted close Khatami ally Mostafa Tajzadeh as saying.

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