Iran threatened to pull out of talks and resume production of nuclear fuel than can be used in atomic warheads, as new satellite images of a heavy-water plant in Iran suggest that Iran is only one year away from producing an atomic warhead.



Iran’s latest threats were made in response to the United States’ demand that its nuclear program be subject to UN supervision and sanctions.



“If the Americans succeed in referring Iran’s case to the Security Council, Iran will immediately suspend all its voluntary confidence-building measures,” said Hassan Ruhani, Iran’s chief nuclear negotiator.



Ruhani also said that Iran will not agree to the EU’s demand that it cease its uranium enrichment program. The EU has offered Iran economic incentives in return for dropping its program to develop nuclear fuel.



Meanwhile, satellite photos indicating that a heavy-water plant that can produce weapons grade plutonium near the town of Arak, 240 km south of Tehran, is nearing completion, is worrying members of the Institute for Science and International Security, a U.S. think-tank.



“Adjacent to the reactor construction site is the heavy-water production plant, which is almost completed and is anticipated to supply the necessary heavy water for the heavy-water reactor,” an analyst for the institute said.



The head of the ISIS, David Albright, a former UN weapons inspector, said he had seen photographs of what seemed to be steam coming out of the heavy-water plant.



“We think they have been testing it,” he said.



While Iran claims that its nuclear program is designed to produce electricity and not nuclear warheads, both the U.S. and the E.U. believe that it is using its civilian program as a cover for the production of atomic weapons.