DAMASCUS - Syrian President Bashar al-Assad said Tuesday that his country is "in a state of a real war," noting that all of the Syrian polices should be directed to win that war, according to state-run SANA news agency.

Assad made the remarks in a directive speech to the newly- formed cabinet, in which the embattled leader stressed that "we live a state of real war... all of our policies, directives will be directed in order to gain victory in this war."

"They are legitimate demands for the citizens even though they are greater than capabilities," said Assad, referring to the "war. " "But when we transparently communicate with citizens, the citizens will understand and support us."

Assad's remarks came as the country witnesses a stark escalation of violence and clashes between the government troops and the rebels Free Syrian Army (FSA).

Overnight Monday and after day-break Tuesday, severe clashes broke out in the Damascus' suburbs of Hameh and Qudsaiah between the Syrian troops and armed rebels, in one of the worst fighting so far around Damascus in the 16-months unrest.

Syria's state media said Syrian troops killed and arrested some armed groups in the two suburbs, adding that most of those apprehended were Arabs from outside Syria.

Meanwhile, the opposition Local Coordination Committees said at least 86 people were killed Tuesday nationwide, 33 of whom were allegedly killed by the government troops' shelling on Hameh and other restive suburbs.

The Syrian Observatory for Human Rights, a group of activists based in London, put the documented casualties on Tuesday at 38.

Activists cited by the Qatar-funded al-Jazeera TV said there were clashes between the defectors and the Syrian army in the northern region earlier in the day, alleging that one helicopter was shot down and six tanks were destroyed.

Yet the activists' report couldn't be independently checked.

As the Syria's confrontations and battles seem to be inching toward the heart of the capital Damascus, the international community is bracing for the June 30 meeting in Geneva, at which big powers and regional players will discuss options aimed at bringing the 16-month crisis in Syria to a close.

Russian UN Ambassador Vitaly Churkin said Tuesday that Russian Foreign Minister Sergei Lavrov "is fully prepared" to attend the June 30 meeting, adding that Moscow expects the upcoming meeting to "be productive."

Russia has insisted on Iran's joining the conference, saying the republic has an influence on the situation in Syria, a move that was met by the United State's rejection.

On Tuesday, State Department spokeswoman Victoria Nuland called "the appropriate participation" one of the issues still under discussions, as UN-Arab League joint envoy Kofi Annan still wants regional players as well as big powers to attend the Geneva meeting.

"We are still working on the participation. We do not think that Iran has a place at the table," Nuland said at a regular news briefing, accusing the Islamic republic of continuing its support for the Syrian government in the ongoing conflict.

However, Iran's attendance is seen by many observers as essential, in part because Iran is one of the staunchest allies to Damascus and its participant could have a balancing effect as the conference is mostly dominated by anti-Assad advocates.

Moreover, relations between Syria and Turkey, once its staunch ally, hit a new low after the recent downing of a Turkish fighter jet over the east of the Mediterranean by Syria.

At the NATO meeting on Tuesday called by Turkey, Secretary General Anders Fogh Rasmussen condemned the shooting down of the jet, calling it "unacceptable," and said the alliance stands by its member Turkey but is not considering a military response.

Since the beginning of the Syrian crisis, Turkey has been sympathetic with the Syrian opposition activists and has given safe haven to many of them. It is now one of the world's most vitriolic critics of the Syrian government and hosts around 33,000 Syrian refugees.

The situation in Syria is getting intractable with the prolonged crisis, as the Assad leadership is now facing mounting internal and external pressures.