"Me, calling to bomb Iran?," exclaimed the king when asked about the remark allegedly made by him, "Never! Never would I wish such thing on our dearest and most respected neighbor".
"Yes, I remember mentioning a snake when drinking tea on the porch with the American Ambassador and assorted generals. A snake appeared and I told my favorite eunuch to cut its head off in no uncertain terms. This is what, most probably, caused the misunderstanding."
Update: there is another version king Abdullah issued later, but it's related to a specific symbolic meaning of the word "snake" and to some personal and rather private bits of Mahmoud Ahmadinejad and the action proposed by the king. I would prefer to skip the details, since it causes me bouts of blushing that could be unhealthy, I am told.