Iran declares nuclear programme irreversible

· Rhetoric stepped up as sub-orbital rocket is fired
· Security council talks to consider further sanctions
Iran declared yesterday that it was ready "even for war" and that its nuclear programme was irreversible, as it launched a rocket believed to have reached the edge of orbit.

Reaction to the launch of what was described initially by state media as a space rocket, but later only as an experimental sub-orbital device, reflected nervousness about the stand-off. The Iranian president, Mahmoud Ahmadinejad, insisted his country's nuclear fuel programme had "no reverse gear". In response, the US secretary of state, Condoleezza Rice, said: "They don't need a reverse gear. They need a stop button."

The exchange followed last week's finding that Iran had failed to meet a UN deadline to halt uranium enrichment. Tehran insists its nuclear programme is to generate electricity, not build weapons.

Representatives of the five permanent UN security council members and Germany are due to meet in London today to examine new sanctions that could include freezing European export credits and restrictions on arms exports to Iran.

Tehran appeared to step up its rhetoric over the weekend. "Iran has obtained the technology to produce nuclear fuel and Iran's move is like a train ... which has no brake and no reverse gear," the ISNA news agency quoted Mr Ahmadinejad as saying. Referring to gas centrifuges used to enrich uranium, he said: "The westerners are not concerned about the existence and activity of ... centrifuges in Iran. They are concerned about the collapse of their hegemony and hollow power."

Manouchehr Mohammadi, a deputy foreign minister, went further, saying: "We have prepared ourselves for any situation, even for war." Iranian military commanders have said that recent war games, the latest of which involved testing several missiles, show the country's readiness to defend itself.

Iran's chief nuclear negotiator, Ali Larijani, was more measured, talking of reacting "proportionately" to any further pressure. "Iran is ready to resolve existing differences over its nuclear programme through fruitful and careful negotiations," he said in South Africa, urging security council members not to continue their "hostile behaviour".

UN sanctions were imposed on Iran in December barring the transfer of technology and know-how to the country's nuclear and missile programme. Further measures were threatened if enrichment did not end by last week, a deadline the International Atomic Energy Agency certified had not been met.

Ms Rice said there was evidence the sanctions were working. "People in Iran are concerned about the fact that financial institutions are moving out ... and refusing to deal with Iran," she told Fox News. "They're concerned that their oil and gas fields need investment that they're probably not going to be able to get." If Iran were to stop enrichment and reprocessing activities, she said, "we can sit down and talk about whatever is on Iran's mind".

The US has said it wants a diplomatic solution but will not rule out military action. Britain's stance is similar, though there is less emphasis on force, even as a last resort. Dick Cheney, the US vice-president, said that it would be a "serious mistake" to allow Iran to become a nuclear power. He endorsed comments by the Senator John McCain that the only thing worse than a military confrontation with Iran would be a nuclear-armed Iran.

Britain will be represented at today's talks by the Foreign Office political director, John Sawers. Diplomats say he is likely to push for new punitive measures, though these would have to be approved by ministers. Russia and China, which have strong commercial links to Tehran, have refused to back a travel ban and other tougher action.

Foreign ministers from seven Muslim states meeting in Pakistan, meanwhile, called for a diplomatic solution to the "dangerous" stand-off. "It is vital that all issues must be resolved through diplomacy and there must be no resort to use of force," said a statement issued jointly by Egypt, Indonesia, Jordan, Malaysia, Pakistan, Saudi Arabia and Turkey.

Iranian officials last night denied state media reports that the rocket had reached space, which would have meant a huge advance in its missile programme. Tehran said it was a sub-orbital research rocket. The rocket may be related to efforts to launch satellites - Iran launched its first in a joint project with Russia two years ago.

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