Responding to a toughening stance from the United States and Israel against Tehran, Ahmadinejad accused Washington of inventing conspiracies to discredit Iran and sowing discord with its near neighbor Saudi Arabia.

"Yes, we have military capabilities that are different from any other country in the region," Egyptian daily al-Akhbar cited Ahmadinejad as saying. "Iran is increasing in capability and advancement and therefore we are able to compete with Israel and the West and especially the United States."

"The U.S. fears Iran's capability," he told the paper. "Iran will not permit (anyone from making) a move against it."