Iran will destroy Israeli cities if attacked

LIMITED CONCESSIONS ON OFFER

Western officials have said the offer entailed an easing of a ban on trade in gold and other precious metals as well as an import embargo on Iranian petrochemical products.

In exchange, a senior US official said, Iran would among other things have to suspend uranium enrichment to the fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".

Iran has been wary, suggesting that the powers are asking for concessions more significant than they have offered Tehran.

Obama, in a speech to Israeli university students, said "strong and principled diplomacy" remained the best way to ensure that Iran eschewed nuclear weapons.

"We know that there remains time to pursue a diplomatic resolution ...with the sense of urgency that is required. But Iran must know this time is not unlimited," he said.

"Iran must not get a nuclear weapon. This is not a danger that can be contained. I have said to the world that all options are on the table for achieving our objectives," Obama added, alluding to last-resort military action.

Israeli cabinet minister Silvan Shalom, asked whether Israeli and US timelines for action on Iran were converging, told Israel Radio: "He (Obama) also knows that there is a target date for the matter of attacking Iran to deny it nuclear weapons. He knows it, and we know it."

KHAMENEI: IRAN WON'T BUCKLE TO PRESSURE

Khamenei said Iran's struggles over the past year against international sanctions imposed over its contested nuclear programme resembled a battle and that its enemies had confessed to trying to "cripple the Iranian nation".

"What happened last year, we need to learn a lesson," he said, alluding to what he described as Iran's significant scientific and military advances. "This vibrant nation will never be brought to its knees."

But he acknowledged that Iran had work to do to ensure it could meet the challenge of economic warfare waged against it. He said Iran needed to shake off dependence on oil exports and the government needed to adopt astute economic policies.

The last 12 months have inflicted a heavy financial burden on Iran's population as sanctions, combined with what critics say is government mismanagement, have torn the economy.

With inflation and unemployment soaring and the value of the Iranian currency halved since a year ago, the vast majority of Iranians have tightened their belts to celebrate Iran's new year - or Nowruz, the nation's most important holiday.

Traditional foods and purchasing new clothes - central Nowruz traditions - have become a great deal more expensive.

The government has set up subsidised local markets to try to restrain food prices and warned Of heavy fines for those caught profiteering, but that has not prevented an inflationary spiral.

A kilo of pistachios has more that doubled in recent months, forcing many Iranians to stop buying a traditional Nowruz food.

"How are ordinary people suppose to afford that? What would be next? Probably next year, we can't even afford simple fruits," said 48-year-old Shahrokh, who works in a taxi agency.