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Edition: U.S. Article Comments (1) Email Print Reprints Read Analysis: Swedish government seeks way to exclude far-right 19 Sep 2010 BP says oil spill compensation payout rate soars | Video 9:50am EDT China media warn Japan over escalating sea row 8:36am EDT Australia, U.S. warn citizens as India probes shooting 5:05am EDT BP to conduct test to show if Gulf well dead 18 Sep 2010 Shared Editor's choice 17 Sep 2010 Best of the week 17 Sep 2010 Analysis: Swedish rout highlights European socialist crisis 9:33am EDT Editor's choice 8:05am EDT Facebook denies plans to build its own phone 19 Sep 2010 Watched Soros: Gold "not safe" Wed, Sep 15 2010 The week ahead Fri, Sep 17 2010 BP oil well sealed. Sun, Sep 19 2010 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. Editor's choice Our top images from the past 24 hours. Slideshow Iran hits at U.N. nuclear watchdog, defies West Tweet This Share on LinkedIn Share on Facebook Related News Analysis: Iran's Ahmadinejad ahead in political in-fighting 8:12am EDT Inaction may put atom fuel bank funds at risk: U.S. 10:19am EDT Analysis & Opinion The U.S. war in Iraq is over. Who won? Related Topics World » Chief of Iran's Atomic Energy Organization Ali-Akbar Salehi makes a speech during the 54th International Atomic Energy Agency (IAEA) General Conference at the UN headquarters in Vienna September 20, 2010. Credit: Reuters/Herwig Prammer By Fredrik Dahl and Sylvia Westall VIENNA | Mon Sep 20, 2010 10:19am EDT VIENNA (Reuters) - Iran said on Monday the U.N. nuclear watchdog was suffering a crisis of "moral authority and credibility," underlining worsening relations between Tehran and the International Atomic Energy Agency. In a speech to IAEA member states including the United States, Iran's nuclear energy chief Ali Akbar Salehi also voiced continued defiance over international demands that the Islamic state stop work the West suspects is aimed at making atom bombs. "The uncivilized double-track approach of threat and dialogue cannot be conducive and fruitful," he said, referring to the West's policy of imposing sanctions on Iran while offering incentives for it to back down in the eight-year row. Speaking shortly afterwards at the same annual assembly of the 151-member Vienna-based United Nations body, the U.S. representative urged Iran to meet its international obligations. "Otherwise it is clear that there is a broad and growing international consensus that will hold Iran accountable if it continues its defiance," U.S. Energy Secretary Steven Chu said. The United States remained committed to pursuing a diplomatic solution but Iran must assure the rest of the world of the peaceful nature of its nuclear intentions, Chu said. Salehi criticized the IAEA's latest report on Iran's nuclear work as unfair and suggested Western powers had influenced it. "It appears that the agency is suffering from (a) moral authority and credibility crisis," Salehi said. The report showed Iran escalating nuclear fuel enrichment work, which it says is for peaceful uses only, in defiance of tougher U.N., U.S. and European sanctions introduced since June. It also voiced frustration over Iran's lack of full cooperation with IAEA inspectors and investigators. IRAN SEEKS FUEL TALKS Relations between Iran and the IAEA have deteriorated since Yukiya Amano took over as head of the agency in December. He has taken a blunter approach on Iran than his predecessor Mohamed ElBaradei, saying in his reports to the IAEA's board of governors that Tehran could be trying to develop a nuclear-armed missile now, not only at some point in the past. Iran said in June it had barred two IAEA inspectors, accusing them of giving "false" information on its activities. Amano, a Japanese diplomat, has said Iran's repeated rejections of his staff was hampering the IAEA's work and Western powers have accused Tehran of intimidating the agency. Salehi also called on major powers to resume talks "without further delay" on a plan to provide nuclear fuel to a Tehran medical reactor in exchange for some of its low-enriched uranium stockpile -- potential bomb material if refined to a high level. Regarded at the time by world powers as a prospective confidence-building step, the deal stalled last year after Iran backed away from the initial terms for an atomic fuel swap. Western diplomats do not rule out a resumption of the nuclear fuel discussions. But they stress the need for broader negotiations which they hope will lead to Iran suspending uranium enrichment, something it has repeatedly ruled out. In its statement at the IAEA assembly, the European Union urged Iran to meet with major powers "with the ultimate goal of establishing a comprehensive relationship, involving cooperation in all fields ... and benefiting both sides." In Washington on Monday, a U.S. Treasury official said Iran was struggling with international sanctions and pressure on its economy and banking sector was mounting. Iran, the world's fifth-largest oil exporter, has dismissed the impact of sanctions on its economy. Salehi denounced the punitive measures as "unjustified and illegal." (Editing by Mark Heinrich) World Comments See All Comments (1) | Post Comment Sep 20, 2010 10:58am EDT Such an ironic statement consideirng the entire government of Iran is suffering an issue of moral authority and credibility with the world. somethingtosay Report As Abusive See All Comments (1) 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 Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research 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 Reuters on Facebook 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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