Iran has further stepped up its production of highly enriched uranium, according to the UN nuclear watchdog, which set out "serious concern" at the development.

In a confidential report seen by the BBC, the International Atomic Energy Agency (IAEA) said Iran now possesses over 400kg of uranium enriched to 60% purity - well above the level used for civilian purposes and close to weapons grade, and a near 50% increase in three months.

It is enough for about 10 nuclear weapons if further refined, making Iran the only non nuclear-armed state producing uranium at this level.

Iran has long said its programme is peaceful.

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