Straw said he remained optimistic about the outcome as the Security Council prepared to discuss Iran's refusal to re-suspend its nuclear research activities, which is widely suspected of being a front for an atomic weapons programme.

"It will be hard going in the Security Council but I am heartened that it was hard going to get a majority to report Iran to the Security Council in the board of governors' meeting (of the International Atomic Energy Agency)," he added.

Straw reiterated his statement of Monday that an "incremental approach" would be taken to the situation but fudged direct questions about whether he would back economic sanctions against Tehran.

"Initially there will be a presidential statement. If that doesn't work, we are hoping for a Security Council statement. If that doesn't work, we're looking towards measures," he said.

Straw also rebuffed suggestions from his opposite number in the Conservative Party, William Hague, that his ruling out military action stood at odds with Prime Minister Tony Blair's position.

Hague referred to a comment by Blair last month in which he said "never say never" about a military response to the stalemate.

"There isn't any distinction in terms of the British government's approach. Nobody is talking about military action. There is no 'casus belli' (act or situation justifying or provoking war)...," he said.

"It's very important that we are straight with the British public about what's likely to be used and what's not likely to be used."

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