French President Nicolas Sarkozy on Monday urged developing countries to embrace nuclear energy and rich lenders to help pay for it, but stood firmly against countries that "cheat" and use the technology to make weapons.

Iran on Sunday launched a new production line of highly accurate, short range cruise missiles capable of evading radar, state TV reported.

The West says Tehran is not capable of turning the material into the fuel rods needed by the reactor. Instead it fears that Iran wants to enrich the uranium to make nuclear weapons.

Iranian nuclear technicians set dozens of centrifuges spinning Tuesday to begin enriching uranium stocks to a significantly higher level, prompting President Barack Obama to warn of a "significant regime of sanctions."

Iran began enriching uranium to a higher level on Tuesday over the vociferous objections of the US and its allies, who fear the process could eventually be used to give the Islamic republic nuclear weapons.