"We will continue our nuclear activities and do not accept illegal international obligations," Foreign Minister Manouchehr Mottaki was quoted as saying by state television.

"We will not retreat from the nation's rights under any circumstances and our diplomacy is based on protecting national interests," Mottaki added.

The UN Security Council has given Iran until August 31 to halt enrichment and reprocessing activities or face possible sanctions.

The resolution was pushed through after Iran ignored a previous non-binding deadline and failed to respond to an international offer of incentives in exchange for a moratorium on nuclear fuel work.

Iran has repeatedly insisted its nuclear programme is for civil purposes only despite Western concerns that it may be cover for an attempt to develop the bomb.

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