Mahmoud Ahmadinejad set the scene for a showdown with the international community yesterday by travelling to the site of Iran’s nuclear reactor at Bushehr and declaring: “I am telling those fake superpowers that the Iranian nation became independent 27 years ago and on the nuclear case it will resist until fully achieving its rights.

”Our nation cannot step back because of the bullying policies of some countries. Those whose arms are stained up to the elbow with the blood of other nations are now accusing us of violating human rights and freedoms.”

Thousands of supporters responded with shouts of “Death to America!” and “Death to Israel!”.

Mr Ahmadinejad spoke after Mr Bush declared on Tuesday night that the world “must not permit the Iranian regime to gain nuclear weapons”.

In his annual address to Congress, broadcast live in Farsi to Iran, the US President also said that Iran was “now held hostage by a small clerical elite that is isolating and repressing its people”.

The clash will escalate in Vienna today when the International Atomic Energy Agency (IAEA), the world’s nuclear watchdog, votes to report Iran to the United Nations Security Council for breaching international safeguards. The IAEA resolution makes a series of tough demands of Iran, including the suspension of all its uranium enrichment activity. With the backing of America, Britain, China, France and Russia, a majority vote by the 35 member states against Iran is a foregone conclusion.

The Security Council will consider sanctions, though American politicians such as John McCain, the frontrunner for the next Republican presidential nomination, have already hinted at military action.

General Mostafa Mohammad Najjar, Iran’s Defence Minister, declared: “Any attack against Iran’s peaceful nuclear facilities will meet a swift and crushing response from the armed forces.”

Four years ago Mr Bush used his State of the Union address to label Iran, North Korea and Iraq an axis of evil. This year he avoided such flights of rhetoric, but did include a warning to the American people to kick an “addiction to oil” that left America dependent on supplies from the Middle East.

The response to Mr Bush’s speech drew a more muted reaction in America than in Iran. An analysis showed that he was interrupted for applause 58 times, substantially fewer than in any of his four previous State of the Union addresses. There were only 15 references to Iraq on Tuesday, compared with 27 last year, after 12 months in which his Administration’s handling of the war has been increasingly criticised.

The President went to Nashville, Tennessee, yesterday for a speech where he reinforced his view that there should be a new regime in Tehran. “I believe there is an Almighty. And I believe the Almighty’s gift is freedom to every single person in the world,” he said. “Last night I spoke to the people of Iran . . . everybody has the desire to be free and I suggested I wanted to assist them so that some day they will have a democratic government.”

BUSH'S MESSAGE

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