The U.N. nuclear watchdog on Saturday reported Iran to the U.N. Security Council in a resolution voicing concern Tehran's nuclear development may not be "exclusively for peaceful purposes." Iran said it would retaliate immediately.
The decision sets the stage for future action by the top U.N. body, which has the authority to impose economic and political sanctions.
On Friday, the U.N. nuclear watchdog delayed the vote.
A dispute over whether to link the Iranian issue to Israel's nuclear arsenal had delayed the vote. But the dispute was reportedly resolved late Friday after the Americans backed down and accepted compromise language, the New York Times reported.
"The I.A.E.A. board is now poised to adopt a very important resolution declaring the international community's lack of confidence in Iran," the Times quoted Burns as saying. "This is a major development on this issue."
Most of the 35 nations represented on the board uphold the U.S.-backed resolution sponsored by Britain, France and Germany.
But Egypt wanted to include a clause mentioning support for the creation of a nuclear weapons-free zone in the Middle East, the AP reported. A Western diplomat at the meeting said the United States opposed strongly to the linkage of its ally Israel.
On its part Egypt wanted to make the linkage to satisfy domestic concerns, a senior European diplomat told the AP.
Following Friday session, IAEA Director General Mohamed ElBaradei told reporters: "We are reaching a critical phase but it is not a crisis situation. It is about confidence building and it is not about an imminent threat... Whether the Board´s outcome will be to report to the Security Council or not, everybody agrees that the only way to move forward is through diplomacy, through negotiation and there is still a window of opportunity for all concerned parties to find a way forward."
"The draft resolution which is now before the Board says that we should report on that issue. But the sponsors made it clear that the Security Council is not expected to take any action at least before March... very much a window of opportunity. I hope during that month that Iran will continue to cooperate with the Agency, to clarify remaining outstanding issues."