President Hassan Rouhani called for "fair and constructive" nuclear talks Tuesday as Iranians marked the 35th anniversary of the Islamic revolution amid recent progress in negotiations with world powers.

Rouhani, a moderate elected last year on vows to pursue a diplomatic solution to the decade-long impasse over Iran's nuclear program, also warned that Western nations should not have "delusions" about having a military option.

He spoke as hundreds of thousands of people took to the streets to mark the anniversary of the revolution that ousted the US-backed shah, with many railing against the United States, still commonly referred to as the "Great Satan."

Iran is set to resume talks in Vienna next week with the P5+1 group of world powers on a comprehensive nuclear accord following a landmark interim agreement reached in November in which it agreed to curb some nuclear activities for sanctions relief.

But Tehran has laid out a series of "red lines" regarding the talks, and in a show of defiance on the eve of the anniversary announced it had successfully tested a long-range missile and a laser-guided projectile.

"Iran is committed to fair and constructive negotiations within the framework of international regulations; we hope to witness such a willingness in the other party in the upcoming talks," Rouhani said in a speech broadcast live on state television.

"I say explicitly, if some have delusions of having any threats against Iran on their tables, they need to wear new glasses. There is no military option against Iran on any table in the world," he added.

Western nations have long suspected Iran of covertly pursuing nuclear weapons alongside its civilian program, allegations denied by Tehran.

Iran made progress over the weekend with the UN nuclear watchdog by agreeing to divulge information that could shed light on allegations of possible past weapons research.

But officials also insisted on "red lines" in next week's talks with the P5+1 - Britain, France, the United States, Russia and China plus Germany.

Negotiators said they would neither discuss Iran's ballistic missile program nor agree to the closure of any nuclear sites or abandoning the "right" to enrich uranium to 20 percent, a few technical steps away from weapons-grade material.

The missile program - targeted by UN Security Council sanctions - worries Western powers, as Iran boasts long-range missiles with a maximum range of 2,000 kilometers, enough to reach Israel.

AFP