The European countries party to the Iran nuclear deal have told Tehran its decision to enrich uranium at 60 per cent purity, bringing the fissile material closer to bomb-grade, was contrary to efforts to revive the 2015 accord.
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And in an apparent signal to Iran's arch-adversary Israel, which Tehran blamed for an explosion at its key nuclear site on Sunday, European powers Germany, France and Britain added that they rejected "all escalatory measures by any actor".
Israel, which the Islamic Republic does not recognise, has not formally commented on the incident at Iran's Natanz site, which appeared the latest twist in a long-running covert war.
Last week, Iran and its fellow signatories held what they described as "constructive" talks to revive the deal, which the Trump administration quit in 2018 saying its terms favoured Tehran, in a move welcomed by Israel.
But Britain, France and Germany said Tehran's new decision to enrich at 60 per cent, and activate 1000 advanced centrifuge machines at its underground Natanz plant, was not based on credible civilian reasons and constituted an important step towards the production of a nuclear weapon.
"Iran's announcements are particularly regrettable given they come at a time when all JCPoA (Joint Comprehensive Plan of Action) participants and the United States have started substantive discussions, with the objective of finding a rapid diplomatic solution to revitalise and restore the JCPoA," the three countries said in a statement, referring to the 2015 deal.
"Iran's dangerous recent communication is contrary to the constructive spirit and good faith of these discussions," it said of the talks, which resume between Iran and global powers in Vienna on Thursday, aimed at salvaging the accord.
US President Joe Biden's administration called Iran's announcement "provocative" and said Washington was concerned.
The accord has unravelled as Iran has breached its limits on uranium enrichment in a graduated response to the Trump administration's re-imposition of harsh sanctions on Tehran.
Iranian President Hassan Rouhani said the decision to raise the enrichment level was a response to Sunday's sabotage, adding Tehran had no intention of building a nuclear weapon.
"Of course, the security and intelligence officials must give the final reports, but apparently it is the crime of the Zionists, and if the Zionists act against our nation, we will answer it," Rouhani said in a televised cabinet meeting.
In an apparent reference to the incident and Iran's response, the European statement said: "In light of recent developments, we reject all escalatory measures by any actor, and we call upon Iran not to further complicate the diplomatic process."
Biden took office in January with a commitment to rejoin the pact if Tehran returns to full compliance with the deal.
But those efforts have coincided with rising tensions between Iran and Israel, amid a series of reported attacks on Israeli- or Iranian-owned ships since late February, for which the two sides have each accused the other of being responsible.
Iran's deal with the six powers caps the fissile purity to which it can refine uranium at 3.67 per cent. That is well under the 20 per cent achieved before the agreement, and far below the 90 per cent suitable for a nuclear weapon.
Australian Associated Press