"The government in Iran is not in compliance" with the demands of the Vienna-based International Atomic Energy Agency (IAEA) and the Security Council, US envoy Zalmay Khalilzad told reporters.

"What we have done so far is not enough. More needs to be done," said Khalilzad, who chairs the 15-member council this month. "The time has come to look at additional pressure ... to bring about a change in Iranian calculations."

The IAEA report released in Vienna earlier Wednesday said "Iran has not suspended its enrichment related activities" as demanded by the Security Council and has also failed to give the cooperation IAEA inspectors need to "provide assurances about ... the exclusively peaceful nature" of Iran's nuclear program.

But Tehran denied obstructing IAEA inspections of its sites.

"There are no obstacles to lawful and legal IAEA inspections of Iran's nuclear facilities," the deputy head of Iran's atomic energy organization, Mohammad Saeedi, told IRNA.

The IAEA report, marking a deadline for Iranian compliance 60 days after a March 24 UN Security Council resolution, was sent both to the IAEA's 35-nation board of governors and to Security the Council, which can now move towards a third round of sanctions.

The council had imposed a first round last December over fears that Iran seeks nuclear weapons.

Iran insists on its right under the nuclear Non-Proliferation Treaty to produce fuel for civilian-use nuclear reactors.

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