Iran warned Sunday it will retaliate if European powers “exploit” UN reports showing it has stepped up production of highly enriched uranium and detailing its past secretive nuclear activities.

Foreign Minister Abbas Araghchi said in a statement he had told International Atomic Energy Agency chief Rafael Grossi in a phone call that “Iran will respond to any inappropriate action by the European parties,” referring to Britain, France and Germany.

His remarks were made after the UN nuclear watchdog released a confidential report to member states detailing Iran’s secret nuclear activities with material not declared to the agency at three locations that have long been under investigation.

Another report issued by the agency found that Iran had sharply increased its stockpile of uranium enriched to up to........

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