Britain's Foreign Secretary Margaret Beckett says world powers will begin considering sanctions against Iran for its failure to stop uranium enrichment.
Beckett said world powers meeting in London on Friday were deeply disappointed at Iran's position.
She added that possible sanctions under U.N. resolution 41 were included in a United Nations Security Council resolution demanding Iran stop enrichment by August 31st. Iran has ignored the demand.
The U.S. and Britain have been pressing for sanctions against Iran's nuclear program.
Today's talks included U.S. Secretary of State Condoleezza Rice and diplomats from other permanent members of the Security Council Russia, Britain, France and China plus Germany.
A State Department spokesman said he expected more talks among the parties next week.
Russia's deputy foreign minister Alexander Alexeyev said today his country and China oppose threats or the use of force against Iran.
On Thursday, Iranian President Mahmoud Ahmadinejad said Iran is not frightened by the threat of sanctions.
Western nations accuse Iran of seeking a nuclear weapon -- which Iran denies.