"If the US commit a new mistake, all the region will become an unsavoury place for them..."
Iranian President Mahmoud Ahmadinejad said Sunday that Iran never wanted to use oil as a weapon, but if the US attacked the country it would "know how to react", AFP reports.
Fear that a US attack on Iran could lead the Islamic Republic to stop its oil exports or block key shipping channels for oil tankers in the Straits of Hormuz is one of the factors that has driven oil prices to record highs in recent years.
"My prediction is that no war will break in the region," he said. "Our assessment is that this region will not witness a war. There is no cause for concern ... America and its allies are incapable of launching a strike against us."
"If they (the US) commit a new mistake, all the region will become an unsavoury place for them. They will have no place in the region whatsoever," he added.