Sheikh Sabah al-Ahmad al-Sabah also confirmed that the Arab Gulf states were seeking to build their own nuclear reactor, though only for peaceful use.

"The president of Iran visited me here. We had a very frank talk. We told him that if nuclear energy will be used for peaceful purposes we will be the first to welcome it," Sheikh Sabah told the daily.

"But if it is the intention of his leadership to use this energy for military purposes, then we will be very unhappy."

Sheikh Sabah continued: "I hope they use their heads, that they will be reasonable, that wisdom will prevail. They must avoid this very dangerous stage which at present they are in and avoid the dangerous situation that might befall them."

The West, led by the United States, accuses Iran of seeking to acquire an atomic bomb through its nuclear programme, which Tehran insists is solely for peaceful purposes.

The UN Security Council adopted sanctions against Iran in December over Tehran's repeated refusal to fully cooperate with the UN atomic energy watchdog or suspend uranium enrichment.

Asked about the threat of possible American or Israeli military action against Iran, Sheikh Sabah told The Times: "I hope that the confrontation will not happen, but everything is possible."

Recent reports revealed Iran has begun the installation of 3,000 centrifuges in a huge underground bunker at its main nuclear facility in the central town of Natanz.

Sheikh Sabah also confirmed that the Arab Gulf states were planning to build a nuclear reactor of their own: "It is true. We need nuclear facilities for peaceful usage. We will not be able to rely on oil to generate our electricity needs forever."

"Therefore we are actively considering the nuclear option and we have commissioned a study to look into it. We are seeking one reactor that would serve the whole region."

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