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Iran's supreme leader accused the United States Tuesday of trying to use the Internet as a tool to confront the Islamic Republic, declaring that such a policy only showed Washington's frustration.

Last week, U.S. Secretary of State Hillary Clinton challenged Beijing and other governments to end Internet censorship, placing China in the company of Iran, Saudi Arabia and others as leading suppressors of on-line freedom.

The Internet has become a battleground during domestic turmoil in Iran after June's disputed election, with the authorities blocking access to some opposition websites and pro-reform Iranians using it to spread word of new protests.

Government officials have portrayed the opposition protests that erupted after the presidential poll as a foreign-backed bid to undermine Iran's Islamic system of government.

"The Americans have said that they have allocated a $45 million budget to help them to confront the Islamic Republic of Iran via the Internet," state television quoted Supreme Leader Ayatollah Ali Khamenei as saying in a speech.