Saturday, July 29 2006 14:10 Hrs (IST) - World Time -

New York: The UN Security Council has taken up a new resolution which if approved would give Iran until Aug 31 to suspend uranium enrichment and accept a package of international incentives.

"They can take one path and suspend uranium enrichment activities and come into discussion on the very generous offer," said US Ambassador John Bolton, according to Bloomberg news.

"Or, if they choose not to suspend their uranium enrichment, they will face increasing international escalation, economic and political pressure," he added.

French Ambassador Jean-Marc de la Sabliere said a vote could take place Monday.

The five permanent members of the Security Council - Britain, China, France, Russia and the US plus Germany in June offered Iran an incentives package aimed at persuading the Islamic state to cooperate with international demands to come clean on its nuclear activities and stop enriching uranium.

Frustrated by Iran's failure to offer a timely response to the package presented by EU foreign policy chief Javier Solana, the major powers decided to take up the issue again on the Security Council to apply more pressure on Iran. That process has been slowed by the crisis in Lebanon.

Iran had previously set Aug 22 as the date when it would formally respond. Iranian President Mahmoud Ahmadinejad has vowed his country will never surrender its right to pursue uranium enrichment, a process that could lead to the production of a nuclear weapon. If Iran does not accept the deal and halt uranium enrichment, the Security Council could seek economic and political sanctions.

The incentives include providing Iran access to civilian nuclear power.

Iran says its nuclear ambitions are limited to producing energy, but Washington and its European allies are sceptical. The International Atomic Energy Agency (IAEA), the UN nuclear watchdog, has through inspections been unable to verify Iran's claims and referred the issue to the Security Council in March.

Russia and China, however, have been reluctant to come down too hard on Iran and have previously opposed economic sanctions against their important business partner.

But Russia's ambassador to the UN said the Security Council would consider economic penalties if Iran does not suspend uranium enrichment and enter negotiations on the incentives package.