A breakthrough in the deadlock over Iran's controversial nuclear activities remains as elusive as ever, two days after a report by the world's nuclear watchdog threw up more questions than it answered.

While the report, circulated by IAEA Director General Mohamed ElBaradei Friday, made no final judgement on the Iran nuclear issue, it did succeed however in stimulating contradictory responses from Iran and some western countries.

Tehran described the report as "a victory" for its people as it said the country had clarified most issues relating to its nuclear program, but some western countries called for harsher sanctions as the document highlighted Iran's continued refusal to halt uranium enrichment.

IAEA–Iran's "trump card" for negotiation

Describing Tehran as more transparent than in the past over its nuclear program, the report said the International Atomic Energy Agency (IAEA) is still uncertain about whether Iran holds undeclared nuclear materials or has conducted any undeclared activities. Iran has also speeded up its uranium enrichment.

The report said it cannot confirm that Iran's nuclear program is designed for peaceful purposes due to these uncertainties and expressed concerns about Tehran's suspicious activities.