President Mahmoud Ahmadinejad said Monday that Iran will penalize world powers by freezing nuclear talks for two months as he laid down several conditions for resuming the negotiations.

The hardliner said
Iran wanted more countries to be involved in talks over its nuclear program, and added that world powers must clarify Israel 's status of nuclear arsenal and what exactly they sought from the discussions.

"The negotiations [would likely occur] at the end of [the Iranian month of] Mordad," around the end of August, Ahmadinejad said at a
Tehran news conference when asked when Iran would talk to the world powers over its nuclear program.

"We are postponing the talks because of the bad behavior and the adoption of the new resolution in the [United Nations] Security Council. This is a penalty, so that they [the world powers] are disciplined to learn the way of talking to other nations."

The U.N. Security Council imposed a fourth set of sanctions on
Iran on June 9 for refusing to halt its uranium enrichment work, the most sensitive part of its atomic drive.

World powers led by the
U.S. suspect that Iran is masking a weapons drive under what Iran says is a civilian atomic program.

But immediately after the U.N. sanctions the world powers--the
U.K. , France , Russia , China , the U.S. and Germany --that had been negotiating with Iran called for more dialogue to resolve the crisis.

Ahmadinejad said
Iran would talk with them but "other independent nations... will also take part." He didn't specify the names of the countries Iran would like to be involved in the talks.

He said the world powers must clarify what they are seeking from the talks and their "negotiators must clearly express their position on nuclear weapons possessed by the Zionist regime"
Israel .

Iran 's arch-foe Israel , believed to be the sole if undeclared nuclear weapons power in the Middle East , has never ruled out a military strike against Iran 's atomic plants to stop its nuclear program.

Iran has on several occasions demanded that Israel become member of the nuclear Non-Proliferation Treaty and put its nuclear arsenal under the purview of the U.N. atomic watchdog.

Speaking separately on the nuclear fuel swap deal, Ahmadinejad said Iran was ready to talk, "but the talks will be held on the basis of the Tehran Declaration and I don't think there is any need to add anything to it."

"Naturally if France, Russia and the U.S. are coming from the other side, from this side it will be Iran, Turkey and Brazil who will participate in the talks," Ahmadinejad said.

The fuel "exchange is a way for engagement and this is better than confrontation."

On May 17,
Iran , Turkey and Brazil signed what is now called as Tehran Declaration, a proposal which envisages shipping Iran 's low-enriched uranium (LEU) to Turkey to be followed at a later date with the supply of high enriched uranium to Tehran from Russia and France .

The West has cold-shouldered this proposal citing several concerns.

Ahmadinejad also took the opportunity to reject the remarks of the chief of the U.S. Central Intelligence Agency, Leon Panetta, that
Iran could have nuclear weapons ready to use by as early as 2012.

"We have clearly declared that the nuclear bomb belongs to politically retarded governments who lack logic," Ahmadinejad said.

"What good is an atom bomb to anyone? The stupidest thing today is accumulating atomic weapons. They seek accomplices in the crime and
Iran will not be an accomplice in their crime. We are standing firm on disarmament."

Speaking on
U.S. television, Panetta said Sunday that Iran has manufactured enough LEU for two atomic weapons.