What recent assessment he has made of developments in the Iranian nuclear programme; and if he will make a statement.

Dr. el-Baradei, the International Atomic Energy Agency director general, reported on Iran's nuclear programme on 26 May. I spoke to him last week about his report. He confirmed that Iran had failed to suspend enrichment-related activities; had made no progress on transparency measures, for which the United Nations Security Council and the IAEA had called; and had failed to answer the IAEA's questions relating to studies with a possible military dimension. He said that these studies were a "matter of serious concern", and they are the subject of continuing IAEA investigation.

Why did the Prime Minister say on 16 June, after his meeting with President George Bush, that that day he would take action that would immediately freeze the assets of Iran's biggest bank, Bank Melli, when many days later that clearly still has not happened?

I am sorry that the right hon. Gentleman says that has not happened, because there was political agreement at the Foreign Affairs Council that I attended last Monday, and yesterday the formal technical procedure that froze the assets of Bank Melli went through the European Union. I would have thought that that would be welcomed in all parts of the House.

The Foreign Secretary will have seen the reports over the weekend that the Israeli Government were carrying out exercises that suggested a possible long-term intention to attack Iran and her nuclear establishment. Will the Foreign Secretary make every effort to persuade the Israeli Government that such an action would be profoundly unwise?

I am very happy to confirm to the right hon. and learned Gentleman that we are 100 per cent. committed to the pursuit of a diplomatic resolution to the problem in respect of Iran's nuclear intentions, which are, of course, a threat to stability right across the region. There is now an ever wider coalition ready to put pressure on the Iranian regime, and also to try to make it clear to the Iranian people that a major offer of economic, cultural and scientific co-operation is waiting for them. The economic malaise that currently afflicts Iran is the result of the choices made by the Iranian Government, but there is an alternative for them, and we are committed to make sure that the sanctions and incentives reflect that.

The Foreign Secretary will recall that the Prime Minister promised in his Mansion house speech last November tougher sanctions on oil and gas investment in Iran, and yet only last week in his joint press conference with President Bush, the Prime Minister said:

"Action will start today in a new phase of sanctions on oil and gas."

I wonder whether the Foreign Secretary can explain the reasons for this seven-month delay, and does he accept that if Ministers threaten sanctions and then fail to deliver them, all they end up doing is undermining the credibility of any threat this country can make?

I am genuinely sorry that the hon. Gentleman has taken that tack because actually there is agreement across the House that a sanctions and incentives dual track is the right approach to Iran. There is agreement—from Iran to the United States, to this country and to any independent observer—that the sanctions are having an effect on the Iranian economy. The Bank Melli decision has been implemented, as of yesterday, and UN resolution 1803 has been fully implemented and the further sanctions to which he referred. Although the International Atomic Energy Agency discussions were completed only in May, there is the report to the IAEA board, and, as I said, UN sanctions resolution 1803 is now to be implemented. There should be a shared commitment to see those fully in force. The fact that, side by side with those measures, there is a revived offer to Iran is a good thing, not a bad thing, and I am sorry that the hon. Gentleman has tried to create division about that.