Iran began enriching uranium at a fortified nuclear site, the International Atomic Energy Agency said, a move that drew U.S. and France’s condemnation and may accelerate the imposition of stricter sanctions on the country.

TEHRAN, Jan. 1 (UPI) -- Iran Sunday reported success in testing a homemade uranium fuel rod at its Tehran nuclear reactor after much of the world refused to supply it.

The United Arab Emirates says Iran is imperiling the interests of the entire world by threatening to close the Strait of Hormuz. Saudi Arabia refuses to accept Iran's claims that it wasn't involved in an alleged plot to kill the Saudi ambassador in Washington.

The Obama administration has had two major foreign policy events to deal with since mid-December. First there was Iran's threat to close the Strait of Hormuz, a strategic waterway through which much of the world's crude oil supply travels. Then North Korea's Kim Jong-Il died and his youngest son was named his successor.

Iran warned Saudi Arabia on Tuesday to rethink an offer to make up for oil lost to world markets as a result of threatened curbs on its exports as diplomats said an EU embargo may be in force by July.

JERUSALEM (Reuters) - Defense Minister Ehud Barak said Wednesday any decision about an Israeli attack on Iran was "very far off." Barak was speaking on Israel's Army Radio before a planned visit Thursday by U.S. armed forces chief General Martin Dempsey that has triggered speculation Washington will press Israel to delay any action against Tehran's nuclear program. ...

Iran said that all activities at a fortified nuclear site, where it began enriching uranium drawing U.S. condemnation, are under the permanent supervision of the International Atomic Energy Agency.

For leaders on the Iranian side of the Gulf, the past days have offered some hard lessons in the politics of oil.

The enrichment is at an underground site protected from possible airstrikes.

The preoccupation of the moment was the American invasion of Iraq, most especially for Adil Abdul-Mahdi, who would become a Vice President in the new Iraqi government