France backs push for more sanctions against Iran

PARIS (Reuters) - France said on Tuesday major powers had no choice but to work towards imposing fresh U.N. sanctions against Iran after the U.N. atomic watchdog said Tehran had blocked an investigation into its nuclear program.

An International Atomic Energy Agency (IAEA) report circulated on Monday also said Iran had increased its number of centrifuges -- machines that enrich uranium -- and was stepping up development of an advanced model able to refine nuclear fuel 2-3 times faster, in defiance of U.N. resolutions.

"We have no choice but to work in the coming days and weeks on a new (U.N.) Security Council sanctions resolution," French Foreign Ministry spokesman Eric Chevallier said in a statement, adding that the IAEA report was "extremely worrying".

Britain said on Monday it would "push hard" for more sanctions after the report was issued.

Mohammad Nahavandian, head of Iran's industry and mines chamber of commerce, told the Iranian newspaper Sarmayeh that sanctions had raised trade costs. Tehran should use more diplomacy to win over partners and ease import costs which had risen 20 to 40 percent, he said.

The Security Council has imposed three rounds of sanctions against Iran for failing to take steps to ease concerns that its nuclear program is aimed at developing atomic weapons.

Tehran says it wants to master nuclear technology only generate electricity.

France, Britain, Germany, the United States, Russia and China have offered Iran a package of incentives in a bid to persuade Tehran to abandon sensitive technology such as uranium enrichment, but the Islamic Republic has not taken up the offer.

(Reporting by Francois Murphy; editing by Ralph Boulton)