"Arab nations should be careful not to enter a debate that has already failed, thus harming their prestige," Iran's Parliament Speaker Ali Larijani said.
He said relations with the Western world would not improve as long as those countries continue to blame Iran for terrorism.
Iran says its nuclear program is a peaceful drive to produce electricity so that the world's fourth-largest crude exporter can sell more of its oil and gas abroad. The US and its western allies allege that Iran is pursuing a nuclear weapons program while they have never presented corroborative evidence to substantiate their allegations against the Islamic Republic.
Tehran also stresses that the country is pursuing a civilian path to provide power to the growing number of Iranian population, whose fossil fuel would eventually run dry.
Iran is under three rounds of UN Security Council sanctions for turning down West's calls to give up its right of uranium enrichment, saying the demand is politically tainted and illogical.
On December 16, the US, Russia, China, Britain, France and Germany held a closed-door meeting with the representatives of some Arab countries at the UN headquarters to discuss whether they could be of help in resolving the dispute over Iran's nuclear program.
Iran has so far ruled out halting or limiting its nuclear work in exchange for trade and other incentives, saying that renouncing its rights under the NPT would encourage world powers to put further pressure on the country and would not lead to a change in the West's hardline stance on Tehran.
Iran has also insisted that it would continue enriching uranium because it needs to provide fuel to a 300-megawatt light-water reactor it is building in the southwestern town of Darkhoveyn as well as its first nuclear power plant in the southern port city of Bushehr.
Tehran has repeatedly said that it considers its nuclear case closed as it has come clean of IAEA's questions and suspicions about its past nuclear activities.
Analysts believe that the US is at loggerheads with Iran due mainly to the independent and home-grown nature of Tehran's nuclear technology, which gives the Islamic Republic the potential to turn into a world power and a role model for other third-world countries. Washington has laid much pressure on Iran to make it give up the most sensitive and advanced part of the technology, which is uranium enrichment, a process used for producing nuclear fuel for power plants.
The US attempt to push for stronger Security Council sanctions has been undermined by the country's own national intelligence estimate, published in late 2007, which said Iran is not pursuing a weapons program.
Washington's push for additional UN penalties also contradicts reports by the International Atomic Energy Agency Director General Mohammed ElBaradei - one in November and the other one in February - which praised Iran's truthfulness about key aspects of its past nuclear activities and announced settlement of outstanding issues with Tehran.
The February report by the UN nuclear watchdog, the International Atomic Energy Agency, praised Iran's cooperation in clearing up all of the past questions over its nuclear program, vindicating Iran's nuclear program and leaving no justification for any new UN sanctions.
Also in another report to the IAEA's 35-member Board of Governors, ElBaradei once again verified Iran's non-diversion of declared nuclear material, adding that the UN agency has failed to discover any "components of a nuclear weapon" or "related nuclear physics studies" in Iran.
The UN nuclear watchdog has also carried out at least 14 surprise inspections of Iran's nuclear sites so far, but found nothing to support West's allegations.
The Vienna-based UN nuclear watchdog continues snap inspections of Iranian nuclear sites and has reported that all "declared nuclear material in Iran has been accounted for, and therefore such material is not diverted to prohibited activities."
The aforementioned reports have made any effort to impose further sanctions on Iran completely irrational.
Observers believe that Bush's attempt to rally international pressure against Iran lost steam due to the growing international vigilance following the said reports.
Many world nations have called the UN Security Council pressure against Iran unjustified, especially in the wake of recent IAEA reports, stressing that Tehran's case should be normalized and returned to the UN nuclear watchdog due to the Islamic Republic's increased cooperation with the agency.
US President George W. Bush finished a tour of the Middle East in winter to gain the consensus of his Arab allies to unite against Iran.
But hosting officials of the regional nations dismissed Bush's allegations, describing Tehran as a good friend of their countries.
Also in an apparent reference to Washington's Middle East policy, Turkish Prime Minister Recep Tayyip Erdogan said earlier this year that Isolating Iran and Syria is a misguided strategy.
"Dialogue between countries in the region is better than pressure from outside," he said, delivering an opening speech at the World Economic Forum on Europe and Central Asia.
Nations in the region could likely find solutions to Middle East conflict and tensions in Iraq by working together and without external pressure, Erdogan said.
In August, Turkish President Abdullah Gul said that Ankara would not be influenced by others in its relations with neighbors. Gul described the expansion of regional ties as natural, saying that "for Turkey what other countries think is of no importance."