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Edition: U.S. Article Comments (7) Save Email Print Reprints Most Popular Most Shared Evan Lysacek edges Yevgeny Plushenko to figure skating gold 1:30am EST Lady Gaga tops Cowell's "Idol" mentor wish list 18 Feb 2010 Greek MPs lash out at Germany over debt crisis 18 Feb 2010 FOREX-Dollar at 8-mth high, boosted by discount rate rise 18 Feb 2010 Bad news for record lottery "winner" 16 Feb 2010 For Apple suppliers, loose lips can sink contracts 17 Feb 2010 Cleveland deemed most miserable city in USA 18 Feb 2010 China's "ant tribe" poses policy challenge for Beijing 17 Feb 2010 Ohno again cashes in on Korean misfortune 14 Feb 2010 Bulls trade Thomas and Salmons, look to future 18 Feb 2010 IAEA fears Iran working now on nuclear warhead Mark Heinrich and Steve Holland Thu Feb 18, 2010 7:55pm EST Factbox Factbox: Key points of IAEA report citing Iran atom bomb fear Thu, Feb 18 2010 Iranian President Mahmoud Ahmadinejad waves to journalists after a news conference in Tehran February 16, 2010. Credit: Reuters/Raheb Homavandi VIENNA/WASHINGTON (Reuters) - The U.N. nuclear watchdog said on Thursday it feared Iran may be working now to develop a nuclear-armed missile, as Washington warned Tehran of "consequences" for ignoring international demands to stop its atomic program. World In unusually blunt language, an International Atomic Energy Agency report for the first time suggested Iran was actively pursuing nuclear weapons capability, throwing independent weight behind similar Western suspicions. The IAEA seemed to be cautiously going public with concerns arising from a classified agency analysis leaked in part last year which concluded that Iran has already honed explosives expertise relevant to a workable nuclear weapon. The report also confirmed Iran had produced its first small batch of uranium enriched to a higher purity and had set aside the vast bulk of its low-enriched uranium stockpile for this purpose even though this seemed far in excess of possible civilian needs. The developments will intensify pressure on Iran to prove it is not covertly bent on "weaponizing" enrichment by allowing unfettered access for IAEA inspectors and investigators, something it rejects in protest at U.N. sanctions. The United States is already leading a push for the U.N. Security Council to impose a fourth round of sanctions on Iran because of suspicions it may be developing nuclear weapons and has received declarations of support from Russia, which has until now been reluctant to expand sanctions. "We always said that if Iran failed to live up to those international obligations, that there would be consequences," White House spokesman Robert Gibbs told reporters aboard Air Force One as President Barack Obama flew to a political event. Senior Obama administration officials, briefing reporters on the IAEA report, said they were struck by the number of significant technical problems Iran appeared to be encountering and the apparently slow growth of its uranium stockpile. One of the officials, noting Iran had "increased the level of non-cooperation," said it may take Tehran longer to build a nuclear weapon because of the technical problems "but the pattern of behavior is one that I think is very disturbing." Tehran says its nuclear program is meant only to yield electricity or radio-isotopes for agriculture or medicine. It took an opposing view of the report's conclusions. "The IAEA's new report confirmed Iran's peaceful nuclear activities and the country's non-deviation toward military purposes," Iran's envoy to the IAEA, Ali Asghar Soltanieh, told the state news agency IRNA. INTELLIGENCE REPORTS For several years, the IAEA has been investigating Western intelligence reports indicating Iran has coordinated efforts to process uranium, test explosives at high altitude and revamp a ballistic missile cone in a way suitable for a nuclear warhead. In 2007, the United States issued an assessment saying Iran had halted such research in 2003 and probably not resumed it. But its key Western allies believe Iran continued the program -- and the IAEA report offered independent support for that perception for the first time. "The information available to the agency is extensive ... broadly consistent and credible in terms of the technical detail, the time frame in which the activities were conducted and the people and organizations involved," the report said. "Altogether this raises concerns about the possible existence in Iran of past or current undisclosed activities related to the development of a nuclear payload for a missile." IAEA's new chief, Yukiya Amano, is seen as more inclined to confront Iran than his predecessor, Mohamed ElBaradei, who retired on December 1. "Now we see from (available intelligence) that certain activities may have continued after 2004," said a senior official close to the IAEA. "We want to find out from Iran what they've had to do with these nuclear explosive-related activities." The U.S. director of National Intelligence concluded last year that Iran would not be technically able to devise a nuclear weapon before 2013. But a new intelligence estimate is due soon. Iran has dismissed the intelligence reports as fabrication but failed to provide its own evidence. Tehran has boycotted contact with the IAEA on the matter for 18 months. The report, to be considered at a March 1-5 meeting of the IAEA's 35-nation board, said it was vital for Iran to cooperate with IAEA investigators "without further delay." HIGHER ENRICHMENT Last week, Iran announced a start to higher-scale enrichment, saying it was frustrated at the collapse of an IAEA-backed plan for big powers to provide it with fuel rods for nuclear medicine made from uranium refined to 20 percent purity. The IAEA report complained that Iran had begun feeding low-enriched uranium (LEU) into centrifuges for higher refinement before inspectors could get to the scene in the Natanz pilot enrichment facility. "We have expressed our dissatisfaction," said the senior official close to the IAEA. "It is of paramount importance to have this information in a timely way to make sure there are no undeclared activities or facilities in Iran." The big powers accused Iran of reneging on an agreement to ship out two-thirds of its LEU reserve to be turned into fuel rods for the medical reactor. This would have prevented Iran retaining enough of the material to fuel a nuclear weapon, if it were refined to about 90 percent purity. Only France, one party to the U.N. draft deal, and Argentina are known to possess the technology. So analysts ask why Iran would enrich uranium well above its needs, except to lay the groundwork for producing bomb-grade uranium. The report also said Iran increased its LEU stockpile by some 250 kg (550 pounds) to 2,060 kg since November -- enough for one or two nuclear bombs if enriched to 90 percent purity. Iran had earmarked 1.95 tons of its LEU for enrichment up to 20 percent, it said, a significant escalation as further refinement to the weapons-grade threshold would need only around six months. "This quantity is far in excess of the (medical reactor's) needs," David Albright, head of the Institute for Science and International Security, said in an online commentary. But the IAEA report also attested to stagnating capacity at Natanz. It said the number of operating centrifuges had dropped to 3,772 from nearly 4,000. This was well under half of all the machines installed in Natanz, the report indicated. Analysts and diplomats close to the IAEA say Iran may be having serious mechanical problems in keeping thousands of antiquated centrifuges running in unison. The U.S. official said the Iranians were accumulating LEU "at a fairly low rate compared to what they should be able to do on paper" and that Tehran seemed to be "at least several years" away from accumulating enough 20 percent enriched uranium that could then be converted into bomb-grade material. But the senior official close to the IAEA said Iran seemed to be shifting focus to a second enrichment site at Fordow near Qom, which Iran has said will preserve the program if foes bomb Natanz and be operated with advanced centrifuges able to enrich two to three times as fast. Tucked deep inside a mountain bunker to ward off attack, the plant at Fordow is scheduled to open in 2011. (Editing by Eric Beech and John O'Callaghan) World Comments See All Comments (7) | Post Comment Feb 18, 2010 8:25pm EST Consequences, consequences… There are no consequences with Barrack Hussein Obama. He loves his Iranian brothers, and sisters, even if they are holocaust deniers, and want to develop a nuclear bomb. The only people he hates are rich white men, like the wall street bankers, the insurance executives, and the pharmaceutical companies, and any other rich white men I didn’t mention. davideconnolly Report As Abusive Feb 18, 2010 9:21pm EST What would like to know is why the USA and it’s controlled watchdog not jumping up and down when Israel was developing nuclear weapons? They are just a bunch of hypocrites. By the way, I am against ALL nuclear arms. Not just those in Iran. TrevorC Report As Abusive Feb 18, 2010 10:19pm EST I really don’t want to start anything and really I just have a question to ask. Why is is that certain countries are allowed to stock pile nuclear weapons and others are not? I really don’t see a need for any country to carry them but why is it that the United States are allowed to have them and it seems no one else is? Why is are the United States always jumping down the throats of other countries when they have an entire arsenal at their disposal? Again I don’t support Nuclear Weapons(just like TrevorC I am completely against them) Questions Report As Abusive Feb 18, 2010 10:44pm EST that nutbucket “President” of Iran I do not want him in control of anything other than a toy car, Israel sucks wind, though they do not threaten us thy just steal from us, and suck on or tax money, why do we send them money? URQ196 Report As Abusive Feb 18, 2010 11:07pm EST Havent we heard this story before.wmd .Did we find Saddams stash?Why dont other countrys deal with this bad guy instead of the U.S. deerecub1977 Report As Abusive Feb 19, 2010 12:17am EST So what if they do get nuclear weapons. as long as our foreign policy continues the way it does and israel does what it does, every country should have a nuclear weapon. sidrock23 Report As Abusive Feb 19, 2010 1:54am EST Lets ask ourselves a question! Are we as democratic minded as we are claiming we are? If so why we are jumping up and down about Iran’s nuclear felicities and nothing about Israel’s nuclear weapons? Why we are so concerned about Jewish genocide and as yet closing our eyes to Gaza’s genocide in our time and letting it to happen?? And nobody is saying anything about shelling children on the beach and phosphor bombing civilians in there houses in GAZA? NO wonder why this conflict will never end. No wonder why people are fighting with rocks against the state of the art USA supplied weapons. And this war will not come to an end unless Jews moves out of Palestine completely. joobass Report As Abusive See All Comments (7) Add a Comment More from Reuters Fed seeks to calm markets after discount rate rise WASHINGTON/MEMPHIS, Tennessee (Reuters) - U.S. Federal Reserve officials moved to calm speculation that a surprise rise in its emergency lending rate could bring forward broader policy tightening, saying borrowing costs in the economy would stay low. | Video Tiger Woods to make public apology | Video NY Democrats seek to avoid Massachusetts debacle U.S. department stores in fight for market share Evan Lysacek edges Yevgeny Plushenko to figure skating gold Toyota head prepares for Congress grilling on recalls | Video » More Top News China's "ant tribe" problem They live in dingy low-rises and can't afford the middle-class lifestyle they strive for. Will China's white collar "worker ants" revolt? Full Article Chinese housing dream slips away Housing boom spreads to poor center China Vancouver 2010: Norway soars, Vonn wrecks Norwegian biathlete Tora Berger captured her country's 100th Winter Olympic gold, while American Lindsey Vonn crashed and blew her chances of a second gold medal. Slideshow Lysacek edges Plushenko to gold Tooth Fairy may visit silver medalist Ligety predicts "nasty" men's super-G 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. 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