Iran's foreign minister warned Arab neighbors yesterday not to put themselves in a "dangerous position" by aligning themselves too closely with the US in the escalating dispute over Tehran's nuclear activity.

Iran has threatened to close the Strait of Hormuz, used for a third of the world's seaborne oil trade, if pending Western moves to ban Iranian crude exports cripple its lifeblood energy sector, fanning fears of a descent into a wider Middle East war.

European Union foreign ministers are expected at a meeting on Monday to agree to an oil embargo against Iran and a freeze on the assets of its central bank, French Foreign Minister Alain Juppe said, confirming diplomatic leaks.

Saudi Arabia, the world's No. 1 oil exporter, riled Iran earlier this week when it said it could swiftly raise oil output for key customers if needed, a scenario that could transpire if Iranian exports were embargoed.

"We want peace and tranquility in the region. But, some of the countries in our region, they want to direct other countries 12,000 miles away from this region," Iranian Foreign Minister Ali Akbar Salehi said in English during a visit to Turkey.

"I am calling to all countries in the region, please don't let yourselves be dragged into a dangerous position," Salehi told Turkey's NTV broadcaster.

He added the US should make clear that it was open for negotiations with Tehran without conditions. The US, like other Western countries, says it is prepared to talk to Iran, but only if Tehran agrees to discuss halting its enrichment of uranium. Western officials say Iran has been asking for talks "without conditions" as a stall tactic while refusing to put its nuclear program on the table.

Salehi said on Wednesday that Iran was in touch with world powers to reopen talks that he expected to be held soon.

Washington and the EU quickly denied this, saying they are still waiting for Iran to show it wants serious negotiations addressing fears it is trying to master ways to build atom bombs behind the facade of a civilian nuclear energy program.

Turkish Foreign Minister Ahmet Davutoglu said after meeting Salehi that all sides were willing to resume talks, but the time and place need to be settled.

Chinese Premier Wen Jiabao said China has kept "normal" and "justified" trade with Iran, which should be protected. Wen also said that the Strait of Hormuz should be kept open under all circumstances.

"Any extreme acts across the Strait of Hormuz, under whatever circumstances they are taken, are against the common interests and aspirations of the people across the world," the Xinhua News Agency quoted Wen as telling a media conference during his visit to Qatar.

Reuters - Xinhua