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Stakes rise in US-Iran standoff

As the UN reports substantial progress in Iran's nuclear program and US ships gather in the Persian Gulf, US and Iranian diplomats prepare to meet in Iraq.

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Iran says it will not succumb to "enemy" efforts to halt its nuclear program, as a US armada deployed in the Persian Gulf – setting the stage for an important week in Iran's standoff with the United States and other world powers.

US and Iranian diplomats are slated to meet in Baghdad Monday, for the first time, to discuss security in Iraq. And key powers are meeting to renew Western efforts to rein in Iran's nuclear ambitions after the UN's nuclear watchdog reported substantial progress in enrichment capability by Iran. The report has prompted calls from some countries for a third set of sanctions.

"The enemies want us to surrender so that Iran won't have anything to say in the world," President Mahmoud Ahmadinejad said Thursday. "With the backing of the Iranian nation, we are not afraid of the enemies' ... psychological warfare, and with God's help, we have come to our ultimate goals."

The report of the International Atomic Energy Agency (IAEA) shows that Iran has stepped up uranium-enrichment efforts in defiance of Security Council demands.

This week, US commanders have again accused Iran of backing anti-US forces of all stripes in Iraq. On Wednesday, nine warships with 17,000 sailors and marines – the largest US force assembled there in years – passed through the Strait of Hormuz, just miles off Iran's coast. The exercises are to end with an amphibious landing on Kuwait's beaches.

IAEA chief Mohammad ElBaradei warned that his agency's ability to monitor Iran's nuclear advances was "deteriorating" and that, if Iran chose, it could probably build a weapon in three to eight years. "We are moving toward Iran building capacity and knowledge without the agency in a position to verify the nature or scope of that program," Mr. ElBaradei said in Luxembourg. "If we continue in that direction we will end up with a major confrontation."

French President Nicolas Sarkozy said that "one should not hesitate to toughen the sanctions"; China said diplomatic efforts should "intensify."

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