Iran calls on Muslims to boycott peace conference

By Parisa Hafezi

TEHRAN (Reuters) - Iran's top cleric urged Muslim countries on Saturday to boycott a U.S.-sponsored international peace conference on Palestinian statehood next month.

Opposition to Israel is one of the cornerstones of belief of Shi'ite Iran, which backs Palestinian and Lebanese Islamic militant groups opposed to peace with the Jewish state.

"When Palestinians consider this conference as deceitful and refuse to participate, how can Muslim countries take part in that?" Supreme Leader Ayatollah Ali Khamenei said in a sermon broadcast live on state media.

"Other (Muslim) countries also should consider it a deceitful conference."

The United States is optimistic Palestinians and Israelis will agree to a joint document on the tough issues that divide them before the conference in November.

Washington has backed the idea of a small territorial exchange between Israel and a future Palestine so that Palestinians would be compensated for Jewish settlement blocs that would remain under Israeli control in any peace deal.

Negotiations on core issues such as the borders of a Palestinian state and the future of Jerusalem and millions of Palestinian refugees broke down in 2001 amid surging violence.

Since its 1979 Islamic revolution, Iran refuses to recognize Israel.