President Ahmadinejad’s performance confirmed that he is determined to retain his title as uncrowned king of the world’s awkward squad and speaker of the unspeakable.

Hugo Chávez, the left-wing Venezuelan President, might exchange handshakes and gifts with President Obama while other formerly hostile leaders may be prepared to open a new chapter with Washington, but by its most recent words and deeds Iran has demonstrated that it is not budging.

Mr Ahmadinejad’s outburst against Israel might shock those unused to his rhetoric, but in Tehran the language is standard among his hardline supporters and the state-controlled media. Officials in his administration say openly that Israel is “an artificial creation of the West” that will soon disappear, while Palestine will be returned to the Palestinians.

The Iranian leader is not merely speaking for effect. He believes in what he says — and that most of the world supports him. These theatrics would not matter much if Iran was not the pivotal country in the Middle East today; what happens there could decide whether the region is on the threshold of peace or plunged into one of the most dangerous conflicts of modern times.

So far Mr Obama’s gesture of reconciliation last month has been batted away as lacking in substance and clarity. One senior official in Tehran even praised George W. Bush for being “honest” about America’s hostility towards Iran. Of greatest concern is Iran’s nuclear programme. Mr Ahmadinejad is due shortly to set out a new position on this issue. He is unlikely to offer any concessions that would limit the country’s uranium enrichment programme, which experts believe could produce enough fissile material to make a nuclear warhead as early as this year.

With a new right-wing Israeli Government under Binyamin Netanyahu now in power, all the elements are in place for a dangerous escalation. This could be triggered by an Israeli attack on Iran or any number of other scenarios played out in the region.

And in case anyone thought this was a localised problem, a senior adviser to the Iranian President told me yesterday that, in the event of an Israeli attack, Iran would hold not only Israel responsible but also the US, Britain and the West in general. He described what would happen next as “the world catching fire”.

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