Iran said Thursday that it will establish a new enrichment facility and replace first-generation centrifuges at the Fordow enrichment plant with advanced sixth-generation centrifuges, in response to a resolution by the UN nuclear watchdog (IAEA) against Tehran.

In a joint statement, Iran’s Foreign Ministry and the Atomic Energy Organization of Iran (AEOI) said that Iran has “no choice but to respond” to the IAEA resolution accusing Tehran of “non-compliance.”

The statement said Iran’s nuclear agency issued the necessary instructions for the establishment of a new enrichment facility at a secure location.

Instructions have also been issued “for the replacement of first-generation centrifuges at the Shahid Dr. Ali Mohammadi (Fordow) enrichment plant with advanced sixth-generation machines,” it added.

The escalation comes after the UN nuclear watchdog’s board of governors on Thursday formally found Iran in breach of its nuclear obligations for the first time in 20 years.

Iran condemned the IAEA resolution as yet another “instrumental use of the Board for politically motivated purposes, devoid of any technical or legal basis.”

The resolution was pushed by the three European signatories of the 2015 Iran nuclear deal – Germany, France, and the UK – and supported by the US.

“Although we consider the IAEA report to be entirely political and biased, these four countries have gone even further by drafting a resolution whose main contents contradict even the Director General's political report,” the Iranian statement read.

“Since these countries found no ambiguity in Iran’s current nuclear activities, they turned to claims dating back more than 25 years, attempting to revive some of those old allegations. This comes despite the fact that all past issues were officially closed under the IAEA’s November 2015 resolution.”

Iran warned that the latest resolution “severely undermined the credibility and integrity of the IAEA and has further exposed the political nature of this international organization,” which it said leaves Iran with the conclusion that “a policy of engagement and cooperation leads to adverse outcomes.”

On Wednesday, Iran’s Foreign Minister Abbas Araghchi warned European countries against the potential IAEA resolution.

In a post on X, the top diplomat said the resolution will "compel Iran to react strongly," adding that the "blame will solely and fully with malign actors who shatter their own relevance.”

The IAEA resolution comes amid indirect nuclear negotiations between Tehran and Washington, mediated by Oman.

The next round of talks is scheduled to take place on Sunday in Muscat. The main sticking point remains Iran’s uranium enrichment program.

While the US demands a complete halt to enrichment, Iranian negotiators insist the program is non-negotiable and will continue with or without a deal.

China seeks solutions to accommodate 'legitimate concerns of all sides'

China, meanwhile, on Thursday said it supports negotiations with "all parties" and seeks solutions to the simmering Iranian nuclear issue that accommodate the legitimate concerns of "all sides."

A Chinese Foreign Ministry spokesman, Lin Jian told reporters that Beijing "consistently" advocates for resolving the lingering issues through "political" and "diplomatic" means, and supports Iran in maintaining "dialogue."

He was commenting on reports that the US has ordered the evacuation of non-essential personnel from various parts of the Middle East, especially Iraq, due to the potential for regional unrest.

Iranian President Masoud Pezeshkian affirmed Wednesday that his country will not yield to “American arrogance” regarding its nuclear program.

US President Donald Trump said he is "less confident" compared to "a couple of months ago" about reaching a nuclear deal with Iran.

Iran and the US resumed nuclear diplomacy in April, with Oman acting as mediator. Since then, they have held five rounds in Muscat and Rome.

While both sides have acknowledged some progress, a decisive breakthrough has yet to be achieved.

Uranium enrichment has emerged as a key sticking point in the negotiations, with the US calling for its dismantling and Iran insisting the program will continue.

Iran’s supreme leader Ayatollah Ali Khamenei said he does not expect talks with the US to yield results and asserted that Iran “needs no one’s permission” to enrich uranium.

Trump has threatened military action against Iran if a new nuclear agreement is not reached to replace the 2015 nuclear deal, from which Washington withdrew in 2018.