Resolution 1696, adopted by a vote of 14-1, expressed "serious concern" at Iran's refusal to comply with International Atomic Energy Agency (IAEA) orders to halt uranium enrichment and other work that could lead to a nuclear bomb.

But the text stopped short of an immediate threat of sanctions, which have been opposed by Russia and China, and said punitive action would have to be the subject of further discussions.

John Bolton, the US ambassador to the United Nations who has been pushing for a strong stand on the Iranian nuclear program, claimed victory in the resolution adopted after weeks of negotiations.

"This is the first Security Council resolution on Iran in response to its nuclear weapons program, reflecting the gravity of this situation and the determination of the council," he said.

"We hope this resolution will demonstrate to Iran that the best way to end its international isolation is to simply give up the pursuit of nuclear weapons."

Qatar was the only council member to oppose the resolution, arguing it was too confrontational. "We do not want a new volcano erupting in the region," said Qatar Ambassador Nassir Abdulaziz al-Nasser.

The resolution was proposed by Britain, France and Germany, with strong US backing. All suspect Iran's nuclear programme hides covert efforts to build a nuclear bomb, although Teheran says its research is for peaceful purposes.

The resolution calls on Iran to follow IAEA directives "without further delay" and mandates IAEA director Mohammed ElBaradei to give a report on whether Iran has complied by August 31.

If Iran does not suspend its nuclear work by August 31, the UN Security Council will then move on to debating a new resolution that could order economic and political sanctions against the Islamic Republic.

"I think the Iranians are cornered," US Undersecretary of State Nicholas Burns said Sunday on the eve of the Security Council vote.

"What they specifically thought was that they could divide China and Russia, on the one hand, from the United States and Europe on the other, and that's not happened," he said.

Burns said he believed that Iran had been "surprised" by Russia and China agreeing to the resolution. "This is going to be a significant blow to them," he said on Fox News television.

Asked what type of sanctions Iran could face, Burns said: "Obviously, we're going to have to focus on the nuclear industry and try to cut off dual-use exports (to Iran), exports of technologies that can help them further their enrichment and reprocessing activities.

"We certainly would like to inhibit the ability of Iranians to travel, Iranian government officials, or for people to profit from our scientific and technological expertise," he added.

Iran threatened Sunday to reject an offer of international economic and political incentives to stop its uranium enrichment if the Security Council passes the resolution.

Iranian Foreign Ministry spokesman Hamid Reza Asefi said Tehran could "revise" its policies -- implicitly warning that future access for UN inspectors could end -- and that the proposed UN resolution would "worsen the crisis in the region".

"If tomorrow they pass a resolution against Iran, the package will not be on the agenda any more," he said of the international incentives.

Iranian leaders have already warned they could halt cooperation with IAEA inspectors and even quit the nuclear Non-Proliferation Treaty.

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