Envoy: Iran-EU Nuclear Talks Postponed

Iranian Foreign Minister, Manoucher Mottaki, speaks with media in a joint press conference with U.N Secretary General Kofi Annan, unseen, in Tehran, Iran, Sunday, Sept. 3, 2006. "On the nuclear issue, the president reaffirmed to me Iran's preparedness and commitment to hold negotiations" with Western powers to find a solution to the impasse over Tehran's nuclear activities, Annan told a joint press conference with Iranian Foreign Minister Manoucher Mottaki. (AP Photo/Vahid Salemi) (Vahid Salemi - AP)

But he cautioned that introduction of economic sanctions could further increase global oil prices and have a negative impact on regional stability. He added that Russia's location next to Iran and former Soviet Muslim republics in Central Asia made it particularly vulnerable.

"We don't mind using a stick, but we don't want that stick to hit us or our partners over the head," he said.

China's premier Wen Jiabao echoed Shuvalov's sentiments, saying the six powers had to be cautious about moving toward sanctions because they may prove counterproductive.

But U.S. officials on both sides of the Atlantic suggested the time had already come for punitive Security Council action. State Department spokesman Sean McCormack said in Washington the Security Council had made clear in a resolution that it was prepared to vote for sanctions if Iran failed to meet the Aug. 31 deadline to suspend enrichment.

McCormack said Tuesday the United States intended to proceed "down that pathway."

Echoing those comments, Gregory L. Schulte, chief U.S. delegate to the IAEA, accused Iran's leaders of making "a strategic decision to acquire nuclear weapons."

"The time has come for the Security Council to back international diplomacy with international sanctions," he added.

Iran insists it has a right to enrich uranium for generation of nuclear power. But suspicions are growing it wants to develop the technology to enrich uranium to the weapons-grade level for the fissile core of nuclear warheads.

In a further sign that Iran is ready to defy the international community, its parliament took the first step Tuesday toward blocking international inspection of the country's nuclear facilities in case of U.N. sanctions.

The measure would need approval by other bodies before it could take effect.