From The Times UK
By Richard Beeston and James Bone

Iran failed yesterday to comply with a United Nations deadline to halt its uranium enrichment work, increasing tensions between the country and the international community.

The International Atomic Energy Agency (IAEA), the UN’s nuclear watchdog, reported that Iran had continued its controversial enrichment work beyond yesterday’s deadline.

Washington is reported to have drawn up a three-tier sanctions menu that would begin with limited measures to ban the sale of nuclear equipment to Iran, block travel by Iranian officials and seize their foreign assets. If Iran did not comply, the sanctions would be widened and could lead to a ban on commercial flights and an embargo of financial institutions.

President Bush said that Iran must pay a price for defying the international community. We have made our choice. We will continue to work with our allies to find a diplomatic solution, but there must be consequences for Iran’s defiance and we must not allow Iran to develop a nuclear weapon.

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