Iran heading to nuclear breakthrough

Iran is heading towards a major breakthrough in its nuclear program, an Israeli official said yesterday, as the White House warned Iran could face new sanctions if it ignores an international freeze offer.

"As soon as 2010 (Iran) will have the option to reach (uranium production) at military levels," Israeli Deputy Prime Minister Shaul Mofaz told an audience in Washington, adding that this would be an "unacceptable" development.

Oil prices rose $4 in early trade yesterday after the warning by Mr Mofaz stirred concerns of a possible attack on the Opec nation that would disrupt supplies. There has been speculation that either the US or Israel could attack Iran's nuclear facilities, though both have said force should be a last recourse.

The West accuses Iran of seeking to develop nuclear weapons under cover of a civilian energy programme; Iran denies it, and Iran's Supreme Leader Ayatollah Ali Khamenei said this week that Iran would press ahead on its nuclear path.

Western powers gave Iran two weeks from July 19 to respond to their offer to hold off on imposing more UN sanctions on Iran if Tehran would freeze any expansion of its nuclear work.

The White House said yesterday that "negative consequences await" if the Iranians don't respond positively. The informal deadline is today. "That would possibly come in the form of sanctions," White House spokesman Dana Perino told reporters. The UN has already imposed three rounds of sanctions on Iran.

Mr Mofaz, a former Israeli defence minister and contender to replace outgoing Israeli Prime Minister Ehud Olmert, emphasised that any new sanctions should be imposed this year, instead of allowing the Iranians to stall for time past US presidential elections in November.

"We must insist on Iran meeting the timetable set," he said in a speech to the Washington Institute. "The red line should be that there is no uranium enrichment on Iranian soil."

"It is a race against time and time is winning," the Iranian-born Mofaz warned. But he also said he supported diplomacy and spoke of other options as "last resort."