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Full Article Images of January Best photos of the year 2011 Follow Reuters Facebook Twitter RSS YouTube Read Romney clawing his way back in Republican race 1:24am EST Was Einstein wrong - or was the cable loose? 22 Feb 2012 Putin praises Cold War moles for stealing U.S. nuclear secrets 22 Feb 2012 'Seinfeld' Actor in Critical Condition After Apparent Suicide Attempt (Report) 22 Feb 2012 Whitney Houston Open Casket Photo Graces National Enquirer Cover 22 Feb 2012 Discussed 178 REFILE-Al Gore takes aim at ”unsustainable” capitalism 176 Santorum says Obama agenda not ”based on Bible” 147 Romney’s struggles fuel talk of brokered convention Watched Mona Lisa double painted simultaneously Tue, Feb 21 2012 Nine-year-old quizzed over shooting Wed, Feb 22 2012 Amateur video claims to show bodies of Western journalists killed in Homs Wed, Feb 22 2012 Iran talks failure sparks confrontation fears Tweet Share this Email Print Related News Iran defiant as U.N. nuclear talks fail Wed, Feb 22 2012 Russia warns Israel not to attack Iran Wed, Feb 22 2012 Khamenei: No obstacles can stop Iran's nuclear course Wed, Feb 22 2012 Top U.N. inspectors in Iran talks on atom bomb accusations Mon, Feb 20 2012 U.N. inspectors to press Iran over nuclear concerns Sun, Feb 19 2012 Analysis & Opinion A visit to Fukushima Ground Zero Higher oil price should burn itself out Related Topics World » Iran's Supreme Leader Ayatollah Ali Khamenei attends a meeting with Iranian nuclear scientists and managers in Tehran February 22, 2012. Supreme Leader Ayatollah Ali Khamenei said on Wednesday that Iran's nuclear course would not change regardless of international sanctions, assassinations or other pressures. Credit: Reuters/Khamenei.ir/Handout By Fredrik Dahl and Parisa Hafezi VIENNA/TEHRAN | Thu Feb 23, 2012 1:01am EST VIENNA/TEHRAN (Reuters) - The U.N. nuclear watchdog's latest mission to Iran failed to budge a defiant Tehran over its disputed nuclear program, sending oil prices to a nine-month high over fears of an increasing risk of confrontation with the West. The United States criticized Iran on Wednesday over the collapse of the International Atomic Energy Agency's talks in Tehran, saying it again showed the Islamic Republic's refusal to abide by international obligations over its nuclear program. Expressing defiance, Supreme Leader Ayatollah Ali Khamenei said Iran's nuclear policies would not change despite mounting international pressure against what the West says are Tehran's plans to obtain nuclear bombs. "With God's help, and without paying attention to propaganda, Iran's nuclear course should continue firmly and seriously," he said on state TV. "Pressures, sanctions and assassinations will bear no fruit. No obstacles can stop Iran's nuclear work." A team from the Vienna-based IAEA had hoped to inspect a site at Parchin, southeast of Tehran, where the agency believes there is a facility to test explosives. But the IAEA said Iran "did not grant permission." The failure of the two-day IAEA visit could hamper any resumption of wider nuclear negotiations between Iran and six world powers - the United States, China, Russia, Britain, France and Germany - as the sense grows that Tehran feels it is being backed into a corner. The standoff has rattled oil markets. On Wednesday, London-traded benchmark Brent crude for April delivery rose for a third day - up $1.24 a barrel at $122.90, a nine-month high. U.S. crude futures for April were up 3 cents at $106.28 a barrel. In Washington, White House spokesman Jay Carney said the United States was evaluating Iran's intentions. "This particular action (over the IAEA mission) by Iran suggests that they have not changed their behavior when it comes to abiding by their international obligations," Carney told reporters. Iran rejects accusations that its nuclear program is a covert bid to develop a nuclear weapons capability, saying it is seeking to produce only electricity. As Western sanctions mount, ordinary Iranians are suffering from the effects of soaring prices and a collapsing currency. Several Iranian nuclear scientists have been killed over the past two years in bomb attacks that Tehran has blamed on its arch-adversary Israel. Major oil importer Japan was in final talks with Washington on an agreement for cuts in Iranian crude oil imports that could amount to a higher-than-expected 20 percent or more a year, a newspaper reported on Thursday. China, India and Japan, the top three buyers of Iranian oil, are all planning cuts of at least 10 percent. They buy about 45 percent of Tehran's crude exports. IRAN'S DEFIANT STANCE In response to Western pressure and sanctions, Iran has issued a series of statements asserting its right to self-defense and threatening to block the Strait of Hormuz, a vital oil tanker route. The collapse of the nuclear talks occurred as Iran seems increasingly isolated, with some experts seeing Tehran's defiance in response to sanctions against its oil industry and financial institutions as evidence that it is in no mood to compromise with the West. Parliamentary elections on March 2 are expected to be won by supporters of Khamenei, an implacable enemy of the West. The United States and Israel have not ruled out using force against Iran if they conclude that diplomacy and sanctions will not stop it from developing a nuclear bomb. In Jerusalem, Israel's Foreign Minister Avigdor Lieberman dismissed appeals by world powers to avoid any pre-emptive attacks against Iran's nuclear program. Lieberman said that "with all due respect I have for the United states and Russia, it's none of their business. The security of Israel and its residents, Israel's future, is the responsibility of Israel's government." The failure of the IAEA's mission may increase the chances of a strike by Israel on Iran, some analysts say. But this would be "catastrophic for the region and for the whole system of international relations," Russian Deputy Foreign Minister Gennady Gatilov said. Referring to Iran's role in the failure of the IAEA mission, French Deputy Foreign Ministry spokesman Romain Nadal said: "It is another missed opportunity. This refusal to cooperate adds to the recent statements made by Iranian officials welcoming the progress of their nuclear activities." In the view of some analysts, the Iranians may be trying to keep their opponents guessing as to their capabilities, a diplomatic strategy that has served them well in the past. "But they may be overdoing the smoke and mirrors and as a result leaving themselves more vulnerable," said professor Rosemary Hollis of London's City University. Iranian analyst Mohammad Marandi said providing the West with any more access than necessary to nuclear sites would be a sign of weakness. "Under the current conditions it is not in Iran's interest to cooperate more than is necessary because the West is waging a war against the Iranian nation," he told Reuters. IAEA "DISAPPOINTED" OVER OUTCOME Earlier, Iran's envoy to the IAEA, Ali Asghar Soltanieh, said Tehran expected to hold more talks with the U.N. agency, but IAEA Director General Yukiya Amano's spokeswoman said no further meetings were planned. "During both the first and second round of discussions, the agency team requested access to the military site at Parchin. Iran did not grant permission for this visit to take place," the IAEA said in a statement. "It is disappointing that Iran did not accept our request to visit Parchin. We engaged in a constructive spirit, but no agreement was reached," Amano said. A Western official, who declined to be identified, said: "We think that if Iran has nothing to hide, why do they behave in that way?" Iran's refusal to curb sensitive atomic activities which can have both civilian and military purposes and its record of years of nuclear secrecy have drawn increasingly tough U.N. and separate U.S. and European measures. An IAEA report in November suggested Iran had pursued military nuclear technology. It helped precipitate the latest sanctions by the European Union and United States. (Editing By Ralph Gowling) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) Logical123 wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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