A senior Iranian official has said his country is not considering a halt to its nuclear fuel programme.
The Iranian Embassy in Vienna said Tehran's deputy nuclear negotiator had been misquoted in a translation of a speech he gave yesterday that raised the possibility of Iran halting uranium enrichment as a result of negotiations.
Iran is currently considering an offer of economic incentives to halt its nuclear work and is due to reply on 22 August.
Meanwhile, the US has accused Iran of being a major destabilising force in Iraq, claiming Tehran is training and arming insurgent groups and using 'surrogates' to carry out terrorist attacks.
The accusation was made by the top US commander in Iraq, General George Casey, at a Pentagon news conference also attended by the US Defence Secretary Donald Rumsfeld.
General Casey said that he had no evidence of Iranians actually in Iraq directing attacks against Iraqis or US forces, but said that he assumed elements in Tehran were guiding the process.
