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Edition: U.S. Article Comments (2) Video Save Email Print Reprints Most Popular Most Shared Nine dead as Israel storms aid ship | Video 4:40pm EDT UPDATE 2-'Sex' less scintillating at box office 30 May 2010 Euro inches up while stocks remain flat after warning 11:26am EDT German president quits in blow for Merkel 11:46am EDT BP well disaster stuns hardened oil men 27 May 2010 White House says BP's new operation to start soon | Video 30 May 2010 Ship clash leaves Israel in diplomatic hot water | Video 2:29pm EDT Three BP fuel oil traders in U.S. quit 6:48am EDT ECB warns of more bank loan losses | Video 4:27pm EDT Gulf oil spill threat widens | Video 4:49pm EDT Nine dead as Israel storms aid ship | Video 4:40pm EDT Gulf oil spill threat widens | Video 4:49pm EDT ECB warns of more bank loan losses | Video 4:27pm EDT Factbox: Gulf oil spill impacts fisheries, wildlife, tourism 30 May 2010 U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Netanyahu won't hold White House talks 10:48am EDT Euro inches up while stocks remain flat after warning 11:26am EDT German president quits in blow for Merkel 11:46am EDT BP well disaster stuns hardened oil men 27 May 2010 WRAPUP 4-BP, Obama face clamor to halt oil spill 'crime' 30 May 2010 Iran expands nuclear work: IAEA Sylvia Westall VIENNA Mon May 31, 2010 4:31pm EDT Factbox Factbox: Main points from latest IAEA report on Iran 4:24pm EDT Related News IAEA report shows Iran's nuclear defiance says U.S. 4:24pm EDT Related Video US: Iran arms Afghan militants Sun, May 30 2010 VIENNA (Reuters) - Iran has been preparing extra equipment for enriching uranium to higher levels, a confidential U.N. nuclear watchdog report obtained by Reuters said, a move which may increase tensions with the West over its atomic work. World Tehran first started refining uranium to the higher level of 20 percent in February, saying it wanted to produce fuel for a medical research reactor after talks on a possible fuel supply agreement with big powers stalled. Earlier this month Brazil and Turkey resurrected parts of the months-old proposal, under which Iran would ship 1.2 tonnes of its low-enriched uranium stockpile abroad in return for the fuel, seen as a way to reduce nuclear tensions with the West. But the new International Atomic Energy Agency report showed Iran's low-enriched uranium stockpile had grown to 2.4 tonnes, meaning that if the 1.2 tonnes was shipped out now it would still leave it with enough material for a nuclear weapon if enriched to higher levels. Iran says its nuclear work is for peaceful uses only. Yet, major world powers have recently backed a draft U.N. sanctions resolution against its atomic work. "Based on this report Washington is going to feel justified in downplaying the Brazilian-Turkish-Iranian deal and focusing on sanctions instead," said David Albright, head of the Institute for Science and International Security. Iran's move to escalate enrichment to the 20 percent level has raised Western suspicion because it takes the material closer to the 90 percent purity needed to make atomic weapons. The Islamic Republic is also thought to lack the capability to make the special fuel assemblies needed for the medical research reactor. The nine-page IAEA report showed Iran pushing ahead with higher enrichment. It has added a second set of 164 centrifuges -- nuclear enrichment machines -- to help refine the uranium but they were not yet operational. At the time of the previous report in February, Iran had only one set of centrifuges installed for the work. The Islamic Republic has told the agency that the extra machines will support the enrichment work by allowing material to be re-fed into the machines. But analysts say they could be configured to expand the production, a move which would ring alarm bells in the West. BETTER OVERSIGHT BUT LATE Tehran has granted a months-old IAEA request to allow better oversight of the higher enrichment. The agency has said the measures should have been in place as soon as the work started to ensure the material was not being diverted for military uses. Under a new agreement between Iran and the IAEA, inspectors have been able to improve camera angles, keep track of nuclear material and equipment by putting it under agency seal as well as conduct inspections at short notice. "This is good enough for when the cascades are eventually interconnected," said a senior official familiar with the Iran investigation. "In this case the (inspections) regime is very tough." But some said the changes paled in comparison with other issues. "The fact that Iran allowed the IAEA to upgrade its safeguards approach for the 20 percent enrichment work is small comfort, given that Tehran continues to reject so many other IAEA requests necessary for proper application of safeguards," said Mark Fitzpatrick at London's International Institute for Strategic Studies. "This latest report says Iran still refuses to answer questions about the Fordow plant, to provide access to heavy water-related facilities, to answer questions about the possible military dimensions and to provide advance design information." Ali Asghar Soltanieh, Iran's envoy to the IAEA, took an opposing view and said the report proved his country was cooperating well with the agency. "Certainly this report ... shows Iran has carried out its commitments regarding the Non-Proliferation Treaty and all of Iran's activities, including enrichment, are under the complete supervision of the Agency," he told Iran's ISNA news agency. The report said Iran had slightly increased the number of centrifuges enriching uranium to lower levels at Natanz to 3,936, the first expansion in around a year. The number installed but not enriching had fallen slightly to 8,610. Analysts said that the modest rise, after previous years of headlong expansion, suggested Iran could be concentrating its attention elsewhere. It also may be struggling to run large numbers of its 1970s-design centrifuges, which have been prone to breakdowns, they said. World Comments See All Comments (2) | Post Comment May 31, 2010 3:16pm EDT So where’s the big outdry? Rogue nation supplying arms to terrorists working at obtaining atomic bombs. Very comforting! jerryatric Report As Abusive May 31, 2010 3:51pm EDT The rogue Zionists state just opened fire on an unarmed flotilla in the international waters and killed 19 civilians, do we do anything about that?! Or we will let this atrocities and criminal acts by the Zionists to be forgotten once more after the “Goldstone” report by the UN?! BUT we punish Iran for wanting nuclear energy! How lop sided things can get? The Zionists are very well capable of murdering and dropping an A-bomb will not be something too difficult for them or far long to happen. We are being implicated in these murderous acts once again and we need to let the world to know that the American people are against these murderous acts and take concrete acts to punish the rogue Zionist state. I am tired of seeing my money and taxes being used in support of these atrocities. EstherHaman Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. 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. © 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 Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw 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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