Iran expands sensitive nuclear capacity: UN report

VIENNA (Reuters) - Iran has increased its capacity to refine uranium by installing hundreds of more centrifuges at its Natanz plant, a United Nations nuclear agency report said on Wednesday, underlining Teheran's defiance of Western demands to curb the activity.

But, in a development that could help buy time for diplomacy between Iran and world powers, the report also showed limited growth of Iran's most sensitive nuclear stockpile, and it remained below an Israeli "red line" for possible action.