IRAN - Feb 8 - Rafsanjani Warns Iran On Potential US Attack.

Akbar Hashemi Rafsanjani, the influential former Iranian president, warns of the grave consequences for Iran of a possible US attack, in a public challenge to the leadership's handling of the crisis surrounding its nuclear programme. Rafsanjani was speaking during a visit to the holy city of Qom, where he was seeking to foster consensus among senior Ayats against the radical approach of Mahmoud Ahmadi-Nejad, the president. Iran's supreme leader Ayat Ali Khamenei, reiterated that Tehran would retaliate against any attack by targeting US interests round the world. "The enemy knows well that any aggression would face an all-out reaction of the Iranian nation towards the aggressors and their interests in all parts of the world", he was quoted as saying by state television. "Some people say that the US president is not prone to calculating the consequences of his actions but it is possible to bring this kind of person to wisdom". Tensions between the US and Iran have escalated in recent weeks as Washington adopts a more confrontational policy towards what it sees as Iranian attempts to fuel Iraqi violence. The US has also stepped up financial sanctions against Iran and has been pressing European allies to join in with tougher European sanctions. The EU has refused to accede to Washington's demands to increase sanctions on Tehran over and above the UN-mandated measures, however. British diplomats argue that the EU needs to first put into place the UN measures, which focus on preventing the export and financing of technology related to Iran's nuclear and missile programmes. They add that the bloc could look at additional measures after Muhammad El Baradei, the director-general of the IAEA, reports back on Feb 21 on Iran's response to the UN's demands. Within the EU, the UK is the champion of tougher measures, while Italy, which historically grants more credits for exports to Iran than any other member state, wants to give greater focus to negotiations. Pro-western Arab states have also moved to check Iranian influence in the Middle East. Saudi Arabia, which claims Iran is seeking to exploit the Palestinian-Israeli conflict, has been hosting warring Palestinian factions, hoping to convince them to reach agreement on a national unity government. The US insists it has no intention of attacking Iran but fears about military action have intensified since US forces last month captured five Iranians in the northern Iraqi Kurdish city of Arbil. Earlier this week, Iran also blamed the US for the kidnapping of a diplomat in Baghdad. Tehran has been seeking to show it can stand up to a US attack, staging a new round of war games this week. But there has been growing debate over how Iran should manage the crisis. The most senior theologians in Qom have for some time been sceptical about Ahmadi-Nejad's policies, and apparently rebuffed his efforts to meet them in Qom. A Rafsanjani ally admitted that Ahmadi-Nejad ret- ained the backing of Ayat Khamenei but added Rafsanjani's initiative was "part of a process that will bear fruit in time".