Addressing his first cabinet meeting of the new year, he said that Iraqi airspace in northern and southern Iraq had been violated for eight years.

"There is no UN resolution that allows this and ... this action is a blatant and flagrant violation of international laws, charters, and norms, especially the UN Charter," he said

The no-fly zones, which cover about two-thirds of Iraq, were set up by the United States, Britain and France after the 1991 Gulf War to stop Iraq from using its air force against Kurdish rebels in northern Iraq and Shi'ite Muslims in the south. The no-fly zones are not sanctioned by the UN Security Council.

Despite the 70 hours of missile bombardment and subsequent air strikes, Saddam Hussein warned that his forces would resist any further violation of Iraqi air space in defending their sovereignty.

Iraqis are suffering from food and medicine shortages

"This aggressive action primarily violates the will of the Arab nation and the will of the people of Iraq, who have rejected it and resolved to resist it valiantly and courageously," he said.

Iraq's refusal to allow United Nations weapons inspectors access to sites of suspected weapons of mass destruction is at the heart of the country's crisis.

Iraq is also threatening to refuse entry to British and American humanitarian workers who oversee the oil for food programme.

Meanwhile on the streets of Baghdad, the consequences of sanctions are all too evident.