Sept. 21 (Bloomberg) -- Iranian President Mohammad Khatami vowed to continue the country's uranium-enrichment program and threatened to suspend United Nations nuclear inspections as the U.S. pushes for economic sanctions against Iran.

``We are determined to continue the program even if this leads to a halt of talks and suspension of inspections,'' Khatami said, referring to the enrichment of uranium, which can be used in nuclear reactors or weapons. He spoke at a military parade today in the capital, Tehran, according to the official Islamic Republic News Agency.

Iran last week refused a demand by the UN's nuclear watchdog to halt all uranium enrichment, prompting a U.S. rebuke. An International Atomic Energy Agency resolution asked Iran to further open its atomic program to UN inspectors.

The U.S. says it wants the UN to impose sanctions against Iran, holder of the world's second-biggest proven oil reserves after Saudi Arabia, because its nuclear-power plans are being used to disguise a weapons program. Such sanctions may force European oil companies such Royal Dutch/Shell Group to stop working in Iran.

``No one can deter Iran from going ahead with its nuclear program, which is peaceful'' and will be used to generate power, Khatami said, according to IRNA.

Iran has been visited by more than 800 IAEA inspections in the last year, Hossein Mousavian, head of Iran's delegation to the IAEA, said this week.

To contact the reporter on this story: Dania Saadi in the Dubai bureau on dsaadi2@bloomberg.net.

Last Updated: September 21, 2004 04:48 EDT