Iran vows no retreat in nuclear stand-off

Mahmoud Ahmadinejad, Iran's hardline president, said the Islamic Republic would not retreat "even one iota" in the face of growing international pressure after claiming triumphantly it had perfected pilot-scale uranium enrichment and would proceed now on an industrial scale.

"Our answer to those who are angry about Iran obtaining the full nuclear cycle is one phrase. We say, 'be angry and die of this anger'," he said.

Mohamed El Baradei, head of the UN's International Atomic Energy Agency (IAEA), said he could not yet confirm Iran's claims that it had enriched uranium to 3.5 per cent, the level used to fuel nuclear power.

When asked at a news conference in Tehran to confirm Iran had reached the technological milestone, he said: "Our inspectors have taken samples. They will report to the [IAEA] board."

Mr Ahmadinejad's message to the world was simple: Iran is now a nuclear power. As such, Tehran believes its negotiating hand has been strengthened greatly. "The situation is completely changed. We are a nuclear state," he said. "We will not hold talks with anyone about the Iranian nation's right [to enrichment]."

Tehran insists its programme is solely for generating electricity and vehemently denies western suspicions that its ultimate goal is to build nuclear weapons.

Iranian papers across the political spectrum hailed the apparent breakthrough on uranium enrichment as a historic achievement but reflected a debate within the country about the wisdom of continued defiance.

Hardline newspapers backed the president's call for full steam ahead and scoffed at the apparent impotence of the West which had been "checkmated" by Iran. "What can they do with Iran now?" the conservative Jam-e-Jam asked. The ability to enrich uranium had put Iran on an "irreversible path", it said.

But reformist papers argued that, having mastered enrichment, Tehran was in a much stronger position and could afford to make concessions. "The possibility of a compromise between Iran and other parties has been increased," the daily Sharq said.

Mohammad Saeedi, Iran's deputy nuclear chief, has said that Tehran intended to move towards large-scale uranium enrichment involving 3,000 centrifuges by late this year, then expand to 54,000 centrifuges.

Mr El Baradei is to report back to the UN Security Council at the end of this month on whether Iran is complying with the demand to stop all enrichment activity by 28 April or face possible sanctions. China and Russia, two permanent members of the UN Security Council, have close trading and energy links with Tehran and oppose sanctions, but have joined other world powers in chastising Iran over its uranium enrichment plans.

Cui Tianaki, China's assistant foreign minister and a senior arms control expert, is to visit Iran and Russia starting today. China said it hoped "the relevant parties can exercise restraint and not take measures that will escalate the situation".

Iran's claims of an enrichment breakthrough followed on the heels of reports in two American publications that the United States was in the preliminary stages of planning a military strike against Iran's nuclear facilities. The White House dismissed the reports and Tehran shrugged them off as psychological warfare.

However, regional analysts fear Iranian brinkmanship and American sabre-rattling, coupled with increasingly hostile rhetoric between Tehran and Washington, could result in both sides talking themselves into a conflict neither wants.

After this week's announcement, Iran could now suspend enrichment for a year or two because it would take at least that long to produce locally the huge number of centrifuges needed to enrich uranium on an industrial scale. Some reformists argue that would ease international pressure without sacrificing nuclear ambitions. "But it's very hard to say what the chances of a deal are because there's little logic in Iran at the moment," a well-connected businessman in Tehran said.