(AFP)
"We not only are against military action on Iran but are also against economic sanctions," Ebadi said in a speech in Tehran.
"They would spread destitution in Iran and we will do our best to prevent this disaster occurring," the 2003 Nobel peace prize winner said, according to a transcript of her speech.
Her address marked the formation of a "National Peace Council" of around 70 dissident Iranian politicians, social activists and intellectuals.
The list of people who signed on as founding members of the council included figures like Ibrahim Yazdi, head of the outlawed but tolerated Freedom Movement and Hashem Aghajari, who was sentenced to death but pardoned for apostasy.
Also included is the film director Jafar Panahi, winner of the top prizes at the Berlin and Venice film festivals and Iran's leading female film-maker Rakhshan Bani Etemad.
"We must have a society with a sustainable peace and we should avoid being in a situation where there is no war but also no peace," Ebadi said.
Ebadi's call and the formation of the council come at a time when US President George W. Bush has said that "military options remain on the table" in the five-year nuclear standoff with the West.
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