Iranian President Mahmoud Ahmadinejad has instructed the country's Atomic Energy Organisation to start work on producing nuclear fuel for a Tehran research reactor.
Western powers have said they want Iran to send most of its stockpile of low-enriched uranium abroad in return for higher-refined fuel for the Tehran reactor.
Yesterday, the US and Germany said they saw no sign that Tehran would make concessions on its nuclear programme, despite upbeat comments from Iran's foreign minister over prospects for a deal.
Mr Ahmadinejad blamed the world powers for the stalemate over the fuel deal, but left the door open for possible negotiation over the proposal.
He also insisted that world powers ‘unconditionally’ accept exchanging Iran's low-enriched uranium for high purity 20% enriched uranium to be used as nuclear fuel for the Tehran reactor, which makes medical isotopes.
