In Berlin, German lawmakers unanimously condemned the Iranian president's remarks, calling them "completely unacceptable."
Denying the Holocaust is a crime in Germany, a country sensitive about its Nazi past and the genocide that killed more than 6 million Jews during World War II.
"What the Iranian president has said about the state of Israel is completely unacceptable," Swedish Prime Minister Goran Persson said Friday at the EU.
"He knows that he is denying the Holocaust and he is wrong," Persson said.
But Iran continued its verbal assault against Israel, with the defense minister saying in Tehran that any Israeli attack would provoke a "destructive" response.
Israeli defense officials say they have not ruled out a military strike against Iran if it carries on further toward obtaining some nuclear weapons.