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U.S. warns Iran on nuclear threat

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Iran has a processing plant in the city of Isfahan.

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WASHINGTON (CNN) -- The United States has warned Iran against resuming the enrichment of uranium, saying Tehran could face sanctions from the U.N. Security Council if it resumed its nuclear fuel work.

Iran said it would resume work at the Isfahan nuclear fuel plant unless European countries come up with a new package of economic and political incentives by Monday to keep the program off-line.

But White House spokesman Scott McClellan called the threatened resumption of uranium enrichment "an unnecessary and damaging step."

"The Europeans, along with the United States, believe that Iran should adhere to the Paris agreement and continue to work with the Europeans to resolve this issue," McClellan said.

"We've made clear that if Iran is going to violate its agreement and restart uranium reprocessing and enrichment activities, then we would have to look to the next step -- and we would be talking with our European friends about the next step."

The "next step" would be to refer the matter to the U.N. Security Council for possible sanctions, he said.

Iran agreed in November to suspend the production of enriched uranium, which can be used as fuel for nuclear power plants or, in higher concentrations, in nuclear weapons. Britain, France and Germany convinced Tehran to suspend the work in return for improved trade and political relations.

The Islamic republic has given the European Union countries through Monday to come up with a new package of economic and political incentives.

The head of the International Atomic Energy Agency appealed to Iranian officials Monday not to resume uranium work and to give the European Union countries more time to negotiate an extension of the November agreement.

"I also call on Iran not to take any unilateral action that could undermine the agency inspection process at a time when the agency is making steady progress in resolving outstanding issues," said Mohamed ElBaradei, director-general of the Vienna-based nuclear watchdog.

But IAEA spokeswoman Melissa Fleming told CNN that the agency received a request from Iran on Monday to remove the agency's seals from its conversion equipment.

"We've answered that request by saying it would take us more than a week to put our surveillance equipment in place, asked them to refrain from removing any of the seals that would enable us to make sure the equipment hasn't been touched," Fleming said.

Oil-rich Iran says it plans to use its nuclear program to produce electricity. The EU and the United States have expressed concern that the Iranians could be attempting to build nuclear weapons -- an allegation the Iranians deny.

The IAEA said in March that Iran was meeting its legal obligations, but past inconsistencies and failures to disclose information have created "a confidence deficit."

France, Britain and Germany, dubbed the EU-3, are prepared to offer "a very comprehensive package that addresses security and addresses political issues, economic incentives as well as nuclear issues," Fleming said.

"We're saying, 'Let that package be laid down on the table before taking any unilateral action,' " she said.

France expressed surprise and concern over Iran's announcement about its planned uranium conversion activities, which were suspended in November 2004 under the Paris agreement.

"There is no economic or technical justification for the resumption of such sensitive activities," said Agnès von der Mühll, deputy press counselor at the French Embassy in Washington. She said EU-3 countries told Iran last week that they would have new proposals ready by Aug. 7 that would ensure Iran's right to develop "a nuclear program that is safe, economically viable and does not proliferate."

"If Iran lives up to its commitments to suspend activities, we are ready to engage in discussions on this basis and we call on Iran to study it very seriously in all its aspects. It is essential for the continuation of this process that Iran comply strictly with the Paris agreement."

The conversion process that Iran has said it is seeking to restart would convert uranium into UF-6 gas, which can be enriched to make fuel for generating electricity. The Nuclear Non-Proliferation Treaty, which Iran has signed, permits it for that purpose -- but the gas can also be used to create highly enriched uranium for nuclear weapons.

With a new president, Mahmoud Ahmadinejad, set to take the reins of power in less than two weeks, Iran's parliament passed a law a few weeks ago that requires any Iranian government to pursue a peaceful nuclear project in the country.

Iran's permanent representative at the United Nations, Mohammad Javad Zarif, told IRNA on Sunday that Iran's nuclear policy will not change under a new administration.

Journalist Shirzad Bozorgmehr contributed to this story.

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