Tehran has moved a step closer to banning the sale of oil to Europe in retaliation for EU and US sanctions over its nuclear programme, despite a report saying Iran's nuclear capabilities remain limited.
The Institute for Science and International Security has said iran was unlikely to "dash towards" making nuclear weapons because its uranium enrichment capability was too limited.
"Iran is unlikely to break out in 2012 - in great part because it is deterred from doing so," said the ISS in its report.
"Although Iran is engaged in nuclear hedging, no evidence has emerged that the regime has decided to build nuclear weapons.
"Such a decision may be unlikely to occur until Iran is first able to augment its enrichment capability to a point where it would have the ability to make weapon-grade uranium quickly and secretly."
The report came as Emad Hosseini, spokesperson of the Parliament Energy Committee, said members of the committee were finalising proposals to halt oil exports to Europe to be presented to parliament.
"If this draft is adopted, the government will be forced to stop selling oil to Europe before they apply their sanctions", he said.