Bush:Iran threatening world peace

(CNN) -- Iran has denounced video and audio recordings released by the United States of the two nations' confrontation in the Strait of Hormuz as "fabricated," according to statements carried by state-run television station

Iranian Revolutionary Guard boats "harassed and provoked" U.S. Navy ships Sunday, the U.S. military says.

However, President George W. Bush repeated his assertion that Iran is "a threat to world peace" and warned the Islamic republic against any escalation.

"We have made it very clear, and they know our position, and that is: There will be serious consequences if they attack our ships," Bush said on Wednesday. "My advice to them is: Don't do it."

Iran's Foreign Ministry spokesman downplayed the incident earlier Wednesday, calling it "normal," state-run news agency IRNA reported.

"The case ... was similar to the past ones and it was a regular and natural issue," Mohammad-Ali Hosseini said, IRNA reported.

And the state-run Press TV quoted a spokesman for Iran's Revolutionary Guard Navy as saying that the video "had been compiled using file pictures and the audio had been fabricated."

The Pentagon Tuesday released a four-minute, 20-second video of Sunday's incident, including video showing small Iranian boats swarming around U.S. warships in the Persian Gulf. In the audio recording, a man speaking in heavily accented English threatened, "I am coming to you. ...You will explode after ... minutes." Watch the confrontation » (Fabrication)

National Security Advisor Stephen Hadley warned Wednesday: "It's the kind of incident that can provoke exchange of fire. And we think the Iranians need to be on notice that they are fishing in troubled waters here."

Hadley, speaking to reporters aboard Air Force One as they flew with U.S. President George W Bush to Israel, said "it almost involved an exchange of fire between our forces and Iranian forces," but he stopped short of saying if the U.S. Navy would have fired the first shots. CNN