Though the ambiguous IAEA report was clearly not in Iran's favor, Tehran warmly welcomed it, in a move that many observers viewed as a strong signal that Iran still relies on its cooperation with the UN nuclear agency as a "trump card" in its future diplomatic wrestling on the issue.

All signs show that Iran will continue its current strategy in dealing with the nuclear issue by choosing to cooperate with the IAEA and taking the Non-Proliferation Treaty of Nuclear Weapons (NPT) as its basis for fighting for its right to peaceful use of nuclear technology.

Meanwhile, Iran is expected to try to persuade the world that the issue can be solved through negotiations, in a move to win room for its diplomatic struggle on the issue.

US, Europe to seek harsher sanctions

After the release of the report, some western countries claimed the UN Security Council demands not only transparency from Iran over its nuclear program, but also the complete halting of uranium enrichment activities.

They argued that the report showed Iran had violated the UN Security Council's previous resolutions by refusing to halt its nuclear enrichment activities.

One day before the release of the report, France, Britain and Germany formally introduced to the UN Security Council a draft resolution that calls for further sanctions against Iran over its refusal to suspend sensitive nuclear enrichment activities.

The United States, Russia, China, Britain, France and Germany are scheduled to meet Monday to negotiate their position on Iran's nuclear issue and the IAEA will hold its council meeting early March to discuss the report.