Ramita Navai, Tehran Correspondent for The Times, believes that Iran's decision to break the seals at the Isfalan nuclear plant is symbolically important, but many stages remain before crisis is reached.

"The seals were put in place when Iran made a voluntary agreement to suspend its nuclear activities at Isfalan last year. The EU3 (France, Germany, Britain) requested that they were used to ensure that these activities could not be resumed in secret.

"For ordinary people, the removal of the seals has become a uniting issue of national pride. It's the first single issue to bind all Iran - reformists, conservatives, young and old - since the Islamic revolution. The people here feel very strongly that it is their right.

"Everyone you speak to believes that Iran can continue to use the plant for the production of nuclear energy without breaching the Non-Proliferation Treaty. They genuinely see Isfahan as a gas enrichment plant - but this is not simply an energy issue.

"Iran is surrounded by countries which it regards as being less sophisticated than itself but which nevertheless have nuclear military capabilities - India, Pakistan and Israel. People here believe that if those countries have nuclear weapons, then so should they.

"Outwardly, there is a good deal of sabre-rattling going on with the President saying that he is not scared by the threat of sanctions. Iran has just signed a massive gas export deal with China and believes that because of their close economic ties, China would veto any attempt to introduce such penalties.

"But even though there is this outward mood of defiance, the Iranians clearly do not want the talks to break down with the UN Security Council.

"There is the suggestion among some analysts that what we are seeing is part negotiation and part a continuation of the cat-and-mouse game which Iran has been playing with the EU over its nuclear ambitions for years.

"The difference now is that Ali Larijani, who has just been appointed the new chief nuclear negotiator, is taking a far harder line on the issue than his predecessor Hassan Rohani who was more open to negotiations.

"He has described the deal offered by the EU3 as 'giving up a pearl for a sweet' - which signifies a real hardening of Iran's approach.

"Nobody knows what the reaction of Europe and the US to today's annoucement will be. This is an important gesture but many stages remain before we reach a situation that could be described as critical.

"Senior analysts remain convinced that, even though this symbolic step has been taken, if President Ahmadinejad was offered a really mouth-watering deal he could be persuaded to suspend activities at Isfahan again."

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