U.S. declares U.N. must increase sanctions on Iran

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By Louis Charbonneau

UNITED NATIONS (Reuters) - The United States said on Sundaythat Iran has left the U.N. Security Council no choice but toincrease sanctions on the Islamic Republic for ignoring demandsthat it halt sensitive nuclear activities.

The U.S. declaration came a day after an informal deadlinelapsed for Iran to respond to an offer from the United States,Britain, France, Germany, China and Russia for talks on itsdisputed nuclear program.

"It is clear that the government of Iran has not compliedwith the international community's demand to stop enrichinguranium and isn't even interested in trying," said RichardGrenell, spokesman for the U.S. mission to the United Nations.

"They leave the Security Council no choice but to increasethe sanctions, as called for in the last resolution passed."

Tehran has not formally responded to the offer. But IranianPresident Mahmoud Ahmadinejad said on Saturday that Iran wouldnot back down in its nuclear dispute with the powers, whichhave supported three rounds of U.N. Security Council sanctions.

"In whichever negotiation we take part ... it isunequivocally with the view to the realization of Iran'snuclear right and the Iranian nation would not retreat one iotafrom its rights," Ahmadinejad said in a statement.

The U.S. statement was noticed by oil traders. Concernabout Iran's nuclear program was one of the reasons the priceof oil rose by more than $1 (51 pence) to over $126 a barrelshortly before 12 a.m. British time.

The West accuses Iran of seeking to develop nuclear weaponsunder cover of a civilian power program. Iran, the world'sfourth-largest oil producer, says its uranium enrichment driveis aimed solely at generating electricity.

A spokeswoman for EU foreign policy chief Javier Solanasaid in Brussels that he and Iran's top nuclear negotiator,Saeed Jalili, would discuss the six powers' offer soon. Shegave no further details.

Western officials gave Tehran two weeks from July 19 torespond to their offer not to impose more U.N. sanctions onIran if it froze any expansion of its nuclear work.

That suggested a deadline of August 2 but Iran, which hasrepeatedly ruled out curbing any of its nuclear activities,dismissed the idea of having two weeks to reply.

The five permanent U.N. Security Council members andGermany have appointed Solana to be their liaison with Iran.

MILITARY ACTION?

Israel and the United States have hinted that they couldattack Iran's nuclear facilities if it remains defiant.Speculation about a potential attack on Iran has been causingjitters on oil markets in recent months.

But the founder and head of the global intelligence companyStratfor, George Friedman, told weekly magazine Barron's thatthe chance of a U.S. or Israeli attack on Iran is slim becausethe risks to the world economy far outweigh possible benefits.

The U.S. delegation at the United Nations might have to putsome pressure on the rest of the council to discuss Iran again.Diplomats from some of the 14 other council members have saidthey would prefer not to enter into negotiations on anotherround of sanctions against Iran for now.

One of the main reasons for council members' reluctance totake up Iran now is the U.S. presidential election in Novemberand what it could mean for U.S. policy on Iran.

U.S. presidential candidate Barack Obama, a Democrat, hascriticized Republican President George W. Bush's handling ofthe issue and has promised greater engagement with Tehran.

Republican candidate John McCain has criticized Obama'ssuggestion that he would pursue direct talks with Tehran.

The other reason for the council's reluctance is thatRussia and China do not want to discuss sanctions now.Diplomats say the two veto-wielding council members want togive Iran time to consider the offer of economic and politicalincentives in exchange for a suspension of enrichment.

Moscow and Beijing reluctantly backed all three rounds ofU.N. sanctions against Iran but pushed hard to try to waterthem down beforehand in negotiations on the resolutions.

Separately, Syrian President Bashar al-Assad said in Tehranon Sunday that Damascus was not mediating or bringing a messagefrom the West to Iran over its disputed nuclear plans but couldplay a role to help defuse the issue in future.

Assad made his comments during a two-day trip to Iran thatfollowed a visit to Paris in July, when he told FrenchPresident Nicolas Sarkozy he would use his good ties withTehran to help resolve the atomic stand-off.

(Additional reporting by the Tehran bureau, Ingrid Melanderin Brussels, Robert MacMillan in New York and Fayen Wong inPerth; Editing by Doina Chiacu)