Mousavi also did not rule out the possibility of negotiating with US President Barack Obama who on Monday warned that Iran had to make a choice between having a nuclear weapon and building a better future.

"Extremism has damaged us greatly. We have to actively work to earn trust at the international level," Mousavi told reporters at his first press conference since he announced his candidacy for the June 12 presidential race.

"I have said that our foreign policy is extreme. Sometimes we have gone to an extreme and then found ourselves back-pedalling," said Mousavi, who was Iran's last serving premier before the post was abolished.

"We must not adopt a policy that is not well thought out."

Since the 1979 Islamic revolution which toppled the US-backed shah, Iran has been known for its aggressive anti-Western policies which saw Washington cut diplomatic ties with Tehran almost three decades ago.

International human rights groups have repeatedly accused Iran of rights violations since the Islamic regime took power, while its image in the West has deteriorated because of its nuclear drive.

World powers led by Washington suspect Iran of seeking to make atomic weapons under the guise of a civilian nuclear programme, a charge vehemently denied by Tehran.

And Mousavi, a reputed moderate, said Tehran would not deviate from its nuclear programme if he was elected.

"It is our right and we have no right to back-pedal or there will be dire consequences," the candidate said, insisting Iran was not aiming to produce nuclear weapons.

"A right to have technology is different from deviating to weapons building," said Mousavi, who has been virtually absent from the political scene since 1989 when Iran scrapped the post of prime minister.

On Monday, Obama warned that Iran had to make a choice between developing a nuclear weapon and building a better future for its people.

"I have made it clear to the people and leaders of the Islamic republic that the United States seeks engagement based upon mutual interests and mutual respect," Obama said in address to the Turkish parliament.

"Now, Iran's leaders must choose whether they will try to build a weapon or build a better future for their people."

Mousavi did not rule out the possibility of negotiations with Obama. "We are studying the change advocated by Obama. If the change is also in action, we will negotiate, if not, then no," he said.

Asked for his view on the Holocaust, Mousavi distanced himself from the opinion of incumbent hardline President Mahmoud Ahmadinejad who has termed it a "myth."

The West talks of the Holocaust but then "why is it silent about the massacre in Gaza?" Mousavi asked, referring to the December-January assault by Israel during which more than 1,300 Palestinians were killed.

He said he would ease state control over the Iranian television sector in a bid to "create an atmosphere which allows free flow of information."

Turning to the economy, Mousavi said he will also create stability in "economic policies as we have been changing them continuously, and that has caused heavy damage."

The new Iranian president when elected will face an economy that is reeling under high inflationary pressure.

Mousavi is expected to run for the presidency against Ahmadinejad, the incumbent who has yet to formally announce his candidacy, and former parliament speaker Mehdi Karroubi who also plans to stand.

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