Abu Hamza, the Muslim preacher, promised his followers "72 beautiful women in paradise" if they became suicide bombers and called on them to target tourists.
The Old Bailey heard Hamza, preaching in a video tape made at Finsbury Park Mosque in north London. He said the aim of jihad (holy war) was to humiliate non-believers and convert them to Islam.
He added: "Now look at the suicide bombs. Does it fulfil all these purposes? Yes, all of them."
Hamza, 47, is accused of nine counts of soliciting to murder, four counts of using threatening, abusive or insulting behaviour and two further counts of possessing abusive recordings with a view to distribution and possession of a document useful to preparing terrorism.
He praised the mujahideen (holy warriors) and added: "You tell me by Allah, what other obligation in Islam, when the person dies have these kind of things that he will be shahid [martyr], he will have the mercy of Allah, no fear upon him, 72 beautiful women in paradise. These given to him as the first gift."
He was asked by a member of his audience: "I was wondering whether suicide bombing is allowed?"
Hamza replied: "It's not called suicide, it's called Shahid operation. Suicide, this is what people call it to put people off it.
"Because if the only way to hurt the enemies of Islam is by taking your life, then it is allowed."
Hamza added: "When these things happening to the disbelievers, Allah shake them, shake their hearts. Why?
"Because they become terrified. 'These people, what can we do? They're crazy, they're crazy, what can we do?'"
He said tourism was haram (forbidden) and tourists were the shaitan (satan) of all countries.
Sabbah's Blog has another view of the trial.