In the negotiations with his rightist rivals, Mr Sharon indicated, he had been under pressure to toughen the government's policies on Palestinian and other issues and had refused.
Though the supreme leader's statements appeared to condemn offers of talks that come with pressure, Iran has not indicated that it is not open to dialogue altogether.
Television reports indicated that the government may succumb to pressure and on Wednesday allow an adjournment motion on FDI in retail -- a discussion followed by a vote in Parliament that tests the government's support on an issue.