Iran report goes to top UN body

BBC News:

A UN report on Iran's nuclear programme is being forwarded to the UN Security Council for consideration of possible punitive action.

The UN nuclear watchdog took the decision after debating it in Vienna.

The US says the council will debate Iran's "flagrant threats and phoney negotiations" early next week.

But Iran has vowed to continue its nuclear work regardless. It has threatened the US with unspecified "harm and pain" for its opposition. READ MORE

'Firm resistance'

The debate by the UN watchdog - the International Atomic Energy Agency (IAEA) - in Vienna of the long-awaited report came amid a war of words between Iran and the US.

"The United States may have the power to cause harm and pain but it is also susceptible to harm and pain," said a statement issued by Iran's delegation at the talks.

"So if the United States wishes to choose that path, let the ball roll."

Iranian President Mahmoud Ahmadinejad was also defiant: "If we put up a firm resistance, they will be defeated and humiliated by the Iranian nation's will."

The US said Iran had enough nuclear material for 10 atomic bombs and it was time for the Security Council to act.

"Iran has not met the conditions at the IAEA," Assistant Secretary of State Nicholas Burns told Congress on Wednesday.

"We will therefore start a new phase of diplomacy - action by the UN Security Council" on Monday or Tuesday next week, he said.

However, IAEA head Mohamed ElBaradei, who wrote the report, has appealed to Western and Iranian leaders to "lower the rhetoric".

"Everybody is looking forward to a political settlement... What we need now at this stage is a cool-headed approach," he said.

The council has the power to impose sanctions, but it is not clear that all its key members would back punitive measures.

Oil threat

Earlier, Javad Vaidi, Iran's top delegate to the IAEA said Tehran would continue small-scale enrichment despite the IAEA's opposition.

Mr Vaidi also suggested Iran might at some point cut oil exports.

However, Iranian Oil Minister Kazem Vaziri-Hamaneh later said his country would not halt oil exports even if sanctions were called over the nuclear issue.

Iran is the world's fourth largest oil exporter. Its economy relies heavily on selling oil.

The US opposes allowing Iran to enrich any uranium, a key component for bomb-making.

The IAEA report said the watchdog could not confirm that Iran was not seeking nuclear weapons.

It wants Iran to suspend uranium enrichment altogether.

Tehran says it wants to develop its nuclear sector only to produce energy for civilian purposes.

Three years of negotiations between Iran and the EU have brought no significant result, and Iran resumed enrichment in January after a two-year hiatus.

If the Security Council does take action, its first step is likely to be to issue a demand that Iran stop nuclear activities by a certain deadline.

It might then issue a further warning before beginning to consider sanctions.