Tehran gets two-week deadline to halt its nuclear programme

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The ultimatum came after talks in Geneva to resolve the crisis ended in stalemate.

A US State Department spokesman said Washington hoped Iran now understood it had a choice between co-operation and confrontation 'which can only lead to further isolation'.

Bone of contention: Nuclear power plant in Bushehr, Iran

Defiant: Iran's chief nuclear negotiator Saeed Jalili in Geneva yesterday

But prospects of ending a row that has triggered tensions in the region and unsettled oil markets looked slim as Iran's top nuclear negotiator Saeed Jalili insisted Tehran would not even discuss a demand to freeze uranium enrichment.

'We still didn't get the answer we were looking for,' European Union foreign policy chief Javier Solana said after six hours of talks with Jalili and envoys from the US, Russia, China, France, Germany and Britain.

Solana said he hoped for a clear answer from Tehran in two weeks to a month-old offer of trade and technical incentives to halt enrichment.

But he added: 'The Iranians know very well what will continue to happen if nothing happens otherwise.'