Defense Secretary Leon Panetta says intelligence shows Iran is continuing to enrich uranium but Tehran has not made a decision to proceed with developing a nuclear weapon.
Panetta told a House panel Thursday that the United States will not allow Iran to develop a nuclear weapon or close the Strait of Hormuz. He said economic and diplomatic sanctions have taken a toll on the regime.
The former CIA director said the United States is open to negotiations to find a diplomatic solution but the U.S. keeps all options on the table.
Panetta made the comments a day after Iran claimed two major advances in producing nuclear fuel and signaled it was on the verge of imposing an oil embargo on European countries to retaliate for sanctions.