TEHRAN: Influential Iranian cleric Akbar Hashemi Rafsanjani said yesterday he hoped the US would learn from the conflict in Lebanon and allow Iran's nuclear issue to be solved by negotiation rather than confrontation.

The Iranian government has welcomed the withdrawal of the Israeli army from Lebanon, calling it a victory for Iran-backed Hezbollah and a defeat for the US and its main ally Israel.

"We hope that America will learn its lesson and will not enter a new conflict to disturb security in this region," Rafsanjani said in a Friday prayers sermon broadcast live on state radio.

The US and the European Union accuse Iran of seeking nuclear weapons and using its nuclear electricity plans as a cover-up. Iran denies the charge and says it wants nuclear energy to produce electricity not bombs.

The US says it wants a diplomatic solution to the nuclear standoff but has refused to rule out military action if diplomacy fails.

"It (the US) should ... let us solve this regional and global problem (Iran's nuclear row) through negotiations," Rafsanjani said.

Some analysts say Iran may feel its hand has been strengthened after Hezbollah scored what Iran called a victory over US ally Israel.

Tehran has vowed to expand its atomic fuel activities despite a UN Security Council resolution demanding it halt nuclear work by August 31 or face the threat of sanctions.

Iran has denounced the resolution, which demanded Iran "suspend all enrichment-related and reprocessing activities, including research and development".

Iran has also said that by August 22 it will answer to a package of incentives proposed by six world powers in an attempt to encourage Iran to halt all nuclear activities.

However there has been no sign of acceptance on Iran's side. - Reuters