The European Union has agreed to impose new measures against Iran over its nuclear programme.

In June, Tehran refused to abandon work on enriching uranium to 20 percent, a key step in the process of producing an atomic bomb. This led to Israel threatening to take military action.

The EU is committed to finding a diplomatic solution. German Foreign Minister Guido Westerwelle says that despite intensive negotiations, Tehran continues to stall.

“We have decided on a further package of sanctions, to increase pressure and make negotiations more substantial in the areas of trade and banking, transport and energy”, he said.

New measures will include increased restrictions on EU trade with Iran, and a ban on selling metals to the country.

Tehran insists that it is not using nuclear technology to develop a weapon and has consistently refused to scale it back its programme.

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