France is convinced Iran
is developing nuclear weapons and should face "stricter sanctions",
Foreign Minister Alain Juppe has said.
He urged EU countries to follow the US in freezing Iranian central bank assets and imposing an embargo on oil exports.
Iran has dismissed the threat of sanctions. On Tuesday, it
denied that a record low of its currency was linked to US punitive
measures.
It also denies Western charges that it is trying to develop nuclear weapons.
Tehran says its programme is peaceful - it needs nuclear technology to generate electricity to meet growing domestic demand.
In November, the US, Canada and the UK announced new
sanctions against Iran in the wake of the report from the UN nuclear
watchdog, the International Atomic Energy Agency (IAEA), that said Iran
had carried out tests related to "development of a nuclear device".
But Iran was not referred to the UN Security Council because Russia and China were opposed to the move.
January deadline
"Iran is pursuing the development of its nuclear arms, I have no doubt about it," Mr Juppe told French television I-Tele.
"The last report by the International Atomic Energy Agency is quite explicit on this point."
Mr Juppe said France wanted the sanctions against Iran toughened further.
He
said President Nicolas Sarkozy had already proposed "the freezing of
Iranian central bank assets, a tough measure, and the second an embargo
on Iranian oil exports".
"We want the Europeans to take a similar step by January 30 to show our determination," he said.
The UN Security Council has already passed four rounds of sanctions against Iran for refusing to halt uranium enrichment.
Highly enriched uranium can be processed into nuclear weapons.
The US had already sanctioned dozens of Iranian government agencies, officials and businesses over the nuclear programme.
The government in Tehran has dismissed the latest measures announced in the wake of the IAEA report in November.
US President Barack Obama signed into law the US bill
targeting Iran's central bank on Saturday. It enters into force in six
months' time.
Since then, however, the Iranian national currency, the rial,
has lost about 12% of its value - trading at about 17,200-18,000 rials
to $1.
Reuters news agency said some exchange offices in Tehran said they had suspended trading until further notice.
"The
rate is changing every second... we are not taking in any rials to
change to dollar or any other foreign currency," the agency quoted Hamid
Bakhshi as saying.
But the government said the dip was not linked to the latest US sanctions targeting the central bank.
Foreign ministry spokesman Ramin Mehmanparast said the US sanctions "have yet to be put into practice".
Military bluster
Iran has also been holding a series of naval exercises in the
Gulf, and on Monday said it had successfully test-fired a surface-to-sea
Qader cruise missile, a shorter range Nasr and later, a
surface-to-surface Nour missile.
A medium-range surface-to-air missile was successfully launched on Sunday, Iranian media reported.
Iran has conducted 10 days of exercises near the Strait of Hormuz, through which 20% of the world's oil passes.
Tehran said on Monday that "mock" exercises on shutting the
strait had been carried out, although there was no intention of closing
it.
The BBC's Iran correspondent James Reynolds says Iran is
using the exercises to try to show that it owns the Gulf and has the
military capability to defend any threat to its dominance.
But, says our correspondent, few believe Iran would carry out
its threat to shut the Strait of Hormuz as to do so would be considered
too economically, politically and possibly militarily damaging for
Tehran.
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