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Bush denies Iran nuclear attack plans -

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(generated from captions) The US President George Bush has described as "wild speculation" a report that his government is considering a nuclear attack on Iran.

But investigative journalist Seymour Hersh is sticking to his story that the Bush administration is resisting pressure from some US generals to take a nuclear-attack option off the table. Iran's hard-line president says the threat is nothing more than US propaganda and will not stop his country from pursuing nuclear energy for peaceful means. More from Stephen McDonell. Yesterday it was reported that the US is planning a possible attack on Iran to bring about regime change. And, according to investigative journalist Seymour Hersh, the Bush Administration is considering the use of tactical nuclear weapons to destroy deeply hidden bunkers. Today President Bush said he is trying to stop Iran from gaining nuclear weapons but didn't exactly rule out using America's own to achieve this. I know you hear in Washington that prevention means force, but it doesn't mean force, necessarily. In this case it means diplomacy - and by the way I read the articles in the newspapers this weekend - it was just wild speculation, by the way. What you are reading is wild speculation. Which is - happens quite frequently in the nation's capital. But Seymour Hersh is sticking by his article

about the US administration's Iran plans. It's going into what they call operational planning,

in which there's serious, consistent,

very carefully drawn up bombing campaigns and what you will. I mean, there's no decision made about what to do but it's not just pie in the sky - this is serious stuff. In Iran, the supposed US nuclear option is being met with skepticism. (Speaks foreign language) TRANSLATION: After its failures in international society the United States is using psychological warfare. It's a big lie and we are not afraid of any strike. Chanting "Nuclear energy is our right," a huge crowd gathered in the Iranian capital to hear the President speak. TRANSLATION: Our enemies know that they cannot stop the Iranian nation from its path with such propaganda, meetings and showing an angry face to us. But Seymour Hersh denies he was leaked the story as a psy-ops tactic. REPORTER: could this perhaps be some kind of psychological war? Sure. It isn't but it could be. I mean, the first thing I would think about is that - the last thing I want to be is used that way and so I did a lot of work to make sure this is a true belief. One of the...decisions I made early on was to have a clear multinational approach

to sending messages - clear messages - to the Iranians that if they want to be a part of the - an accepted nation in the world,

that they MUST give up their nuclear ambitions. But what if they don't? They key question is what would the US and its allies be prepared to do?

And if the US has the use of tactical nuclear weapons still in its basket of options. Many people in the Pentagon think that a nuclear weapon right now would be disastrous. 1.2 billion Muslims would go out of their mind if the Americans did that. Iran has been given a matter of weeks to comply with International Atomic Energy Agency requirements. If it doesn't, the world may start see what the US and its allies have up their sleeves. Stephen McDonell, Lateline.