• Move represents blow to US policy of engagement
Mahmoud Ahmadinejad with the director of the International Atomic Energy Agency, Mohamed ElBaradei
Hopes of a diplomatic breakthrough over Iran's nuclear programme were dwindling tonight after Tehran demanded changes to a uranium exchange deal that European diplomats described as "unacceptable".
If the deal collapses, as seemed likely, the apparent progress made over Tehran's nuclear programme in recent weeks would evaporate, the diplomats said. It would deliver another critical blow to the Obama administration's policy of engagement, and put international sanctions and Israeli military action back on the table.
The uranium deal, agreed in principle in Geneva at the beginning of the month, involved Iran shipping out most of its enriched uranium and, in return, being provided about a year later with fuel rods for its research reactor in Tehran.
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