Iran insisted on Wednesday that the launch of the country''s first home-built satellite has no military aims, despite deep concerns in the West.

"This is a scientific and technical achievement and has no military aims," foreign ministry spokesman Hassan Ghashghavi told reporters.

Iran''s launch of the Omid (Hope) satellite carried by the home-built Safir-2 rocket on Monday has set alarm bells ringing among Western powers already at loggerheads with Tehran over its nuclear programme.

The West suspects Iran of secretly trying to build an atomic bomb and fears the technology used to launch a space rocket could be diverted into developing long-range ballistic missiles capable of carrying nuclear warheads.

Iran insists its nuclear programme is for peaceful energy purposes and that it has the right to technology already in the hands of many other nations, including archfoe the United States.

The West reacted strongly to the satellite launch, which came ahead of a meeting in Germany on Wednesday of senior diplomats from six world powers who are due to discuss the nuclear standoff.

White House spokesman Robert Gibbs expressed disappointment with Iran following overtures for dialogue made by US President Barack Obama. Shortly after taking office last month, Obama said he was willing to extend the hand of diplomacy to Iran, after 30 years of severed diplomatic relations.

"This action does not convince us that Iran is acting responsibly to advance stability or security in the region," Gibbs said.

"All of this continues to underscore that our administration will use all elements of our national power to deal with Iran and to help it be a responsible member of the international community," he said.