Most Read by Bloomberg Iran’s rapidly expanding nuclear program and restrictions on international monitoring are heading for another dangerous crisis, while casting doubt on the Islamic Republic’s claim to a peaceful nuclear project, Western diplomats said. The International Atomic Energy Agency’s governing board formally criticized Iran for the second time this year on Thursday in Vienna. Iran continues to slow an IAEA investigation into traces of uranium taken in samples at three undeclared sites, while its stockpile of fuel — enriched just below weapons grade — rises to record highs. The US and its European allies backed the resolution of censure at the council this week, demanding that Iran urgently cooperate with the IAEA. The proposal was supported by 26 of the IAEA’s 35-member governing board. China and Russia opposed the measure. Five nations abstained and another two did not attend the vote, according to a statement from the Kremlin’s IAEA envoy on Twitter. “Iran continues its unprecedented nuclear escalation,” UK envoy Corinne Kitchell tweeted on Thursday. “This raises serious doubts about the nature of Iran’s nuclear program.” Ahead of the resolution, Iran’s foreign ministry warned that an official reprimand would trigger a “decisive and effective” response from the Islamic Republic. Tehan’s position received support from Beijing and Moscow. “Events have proven time and again that exerting pressure will not help resolve the issue,” said China’s statement delivered to the IAEA board. Europe and the US have followed “the path of confrontation in pushing for this resolution,” he said. Diplomats from France, Germany and the United Kingdom issued a joint statement late Wednesday, calling the situation “very dangerous” because it risks destabilizing regional and international security. A separate statement from the European Union expressed deep concern over Tehran’s failure to cooperate with IAEA observers. The story continues The remarks followed a US intelligence assessment that blamed Iran for Tuesday’s drone attack off the coast of Oman, which targeted an oil tanker linked to an Israeli billionaire. Iran has also faced growing criticism for its violent crackdown on anti-government protests and for supplying Russia with military drones for use in its war against Ukraine. The US said earlier this month it was concerned that Moscow might also acquire surface-to-surface missiles from Tehran. The nuclear deal between Iran and world powers collapsed after then-President Donald Trump pulled the US out in 2018 and reimposed sanctions. In response, Iranian officials expanded the country’s nuclear program. Tehran denies it is seeking to build nuclear warheads, but worries it may develop the technology to do so prompted years of diplomacy that led to the deal with world powers. IAEA Director-General Rafael Mariano Grossi said on Wednesday that even if the nuclear deal, known as the Joint Comprehensive Plan of Action, can eventually be revived, its inspectors may never be able to reproduce data lost since the Iran shut down more than 20 surveillance cameras in June. (Adds resolution to second and paragraphs, China to sixth) Most Read by Bloomberg Businessweek ©2022 Bloomberg LP