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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 1-New U.S. senator helps Democrats advance jobs bill 22 Feb 2010 Jay Leno sets high-profile "Tonight Show" guests 22 Feb 2010 Bad news for record lottery "winner" 16 Feb 2010 Arizona dog is world's tallest 22 Feb 2010 Russian ice dancers stage folk dancing cover-up 22 Feb 2010 UPDATE 1-New U.S. senator helps Democrats advance jobs bill 22 Feb 2010 Arizona dog is world's tallest 22 Feb 2010 How to decline Facebook friends without offence 22 Feb 2010 Nearly 20 percent of U.S. workers underemployed 8:21am EST High blood pressure in U.S. a "neglected disease" 3:22am EST Iran says any fuel swap must be on its territory Ramin Mostafavi and Hashem Kalantari TEHRAN Tue Feb 23, 2010 8:26am EST Related News Russia "very alarmed" at Iranian nuclear stance Fri, Feb 19 2010 IAEA fears Iran working now on nuclear warhead Thu, Feb 18 2010 Iran says will respond to any new sanctions Tue, Feb 16 2010 Iran will consider any new atom fuel ideas: Mottaki Tue, Feb 16 2010 Factbox: Ties binding China and Iran Tue, Feb 16 2010 EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on their ability to film or take pictures in Tehran. A general view shows the nuclear power plant in Bushehr, about 1,215 km (755 miles) south of Tehran, November 30, 2009. Credit: Reuters/ISNA/Mehdi Ghasemi TEHRAN (Reuters) - Iran said on Tuesday any exchange of nuclear fuel must take place on its territory, a condition rejected by Western powers seeking to prevent it stockpiling material which could be further enriched to make a bomb. World The United States and its allies hope to get new United Nations sanctions imposed on Iran in the coming weeks over its continued uranium enrichment, after failing to reach agreement on the fuel exchange. But China expressed reservations on further sanctions, saying greater diplomatic efforts were needed. Western countries fear Iran wants to stockpile uranium to enrich it to levels that could be used for nuclear weapons. Iran says its sole aim is to run nuclear energy plants to generate electricity and produce medical isotopes. "In order to bring about a constructive interaction, we have declared our readiness for fuel swap, provided it is done within the country (Iran)," foreign ministry spokesman Ramin Mehmanparast said. "We are prepared for a fuel swap even though we do not regard this condition of supplying fuel to the Tehran research reactor through a swap as correct." Earlier this month Iran announced a start to higher-scale enrichment which would refine uranium to 20 percent purity -- the level of enrichment it would have received under the proposed nuclear fuel deal. Tehran said it was making the move because the West was dragging its feet over the exchange. The International Atomic Energy Agency (IAEA) said in a report last week that Iran may now be working to develop a nuclear-armed missile, providing further grist to Western countries hoping to persuade China, which has U.N. Security Council veto power, to back harsher sanctions. But China, which has faced Western sanctions itself in the past, has resisted calls for tough measures against Tehran. "We hope relevant parties can show flexibility to create conditions for completely and properly solving the Iran nuclear problem through diplomatic efforts," Foreign Minister spokesman Qin Gang told a news briefing on Tuesday. Mehmanparast said Iran had sent a letter to the IAEA declaring its readiness to cooperate in providing fuel for its Natanz reactor -- an offer which is a non-starter for the West. A copy of the letter, seen by Reuters, said fuel stock at Iran's Natanz reactor was "approaching its end." BRINKMANSHIP Both the United States and Iran appear to be upping the stakes in the stand-off. Iran said on Monday it had earmarked potential sites for 10 new nuclear enrichment plants, two of which could see construction start this year. The same day, Israeli Prime Minister Benjamin Netanyahu called for an embargo on Iran's energy sector, even if the U.N. does not back such a move. On Tuesday, Iran said it had seized the leader of a Sunni Muslim rebel group responsible for a string of deadly attacks, and which Tehran says has links to al Qaeda and support from Pakistan, Britain and the United States. [nHAF327411] Iran also accuses Western powers of fomenting unprecedented protests by opponents of President Mahmoud Ahmadinejad since his disputed re-election last June. The unrest plunged Iran into its worst internal crisis since the 1979 Islamic revolution. The United States and Israel have not ruled out military action against Iran over the nuclear issue. "No power can harm Iran," Ahmadinejad said in a televised speech in eastern Khorasan-e Jonubi province. "The Iranian nation will chop off the hands from the arm of any attacker from any part of the world." Akbar Hashemi Rafsanjani, a key figure in Iran's ruling elite, rallied support around Supreme Leader Ayatollah Ali Khamenei and the government in Iran's twin conflict with domestic dissenters and foreign powers over the nuclear issue. In recent months, followers of President Mahmoud Ahmadinejad criticized former president Rafsanjani for failing to give Khamenei unswerving support against the protest movement. "Our focal point is clear and that is the constitution, Islam, the principle of the office of the jurisprudent and supreme leadership," Rafsanjani told the powerful Assembly of Experts, which he heads. (Additional reporting by Parisa Hafezi, Mark Heinrich, Emma Graham-Harrison, Hossein Jaseb; writing by Andrew Hammond; Editing by Dominic Evans) World More from Reuters Home prices unexpectedly dip NEW YORK (Reuters) - Home prices unexpectedly slipped in December but the annual rate of decline slowed, reinforcing the housing market's rocky road to recovery, Standard & Poor's/Case-Shiller indexes showed on Tuesday. Toyota vows quality shake-up New senator helps Democrats advance jobs bill U.S. Afghan death toll hits 1,000 | Video Target quarterly profit tops estimates Consumer confidence falls to 10-month low in Feb » More Top News Special Report: "Hell to pay" for the dollar? Nearly 40 years after President Nixon took the U.S. off the gold standard, the greenback still dominates world trade. Some say that's about to change. Full Article Tightening underway, Fed a passenger Is change coming for China's yuan? Currencies Vancouver 2010: Track tweaked after more spills Changes are being made to Whistler's controversial sliding track after Latvian and Croatian four-man sleds roll over. Full Article Medals for a few, defeat for most Drug-testers: stalkers or herders? Slideshow: The best of Day 10 2010 winter olympics © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week 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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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