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QUESTION: On Iran, where are we? Are sanctions inevitable at this point? And why is - why is this all falling apart?

MR. KELLY: Well, I mean, you saw the statement out of the White House yesterday, the - that was a response to reports about new plans by the - by Iran regarding its nuclear program. And I think that the international community has sent a very strong message, a very unified message that Iran has to live up to its international obligations, that it has to - it has a choice before it and the choice is very clear. We have offered a path of cooperation that could lead to further integration with the international community. That's the IAEA offer that's on the table. And it's unfortunate that they haven't been able to respond positively on that.

The other choice they have is further isolation. And you know that we have a dual-track policy. The President has said that our patience is not unlimited. He's indicated that we're willing to give a preponderance of attention to the engagement track until the end of the year, and if we don't get a positive response, we're going to start shifting our focus over to the other track, the track of pressure.

QUESTION: So that deadline is still there, the end of the year?

MR. KELLY: Well, we don't like to say deadline, but the offer is there. The offer - we haven't taken it off the table. The IAEA hasn't taken it off and --

QUESTION: You're talking about the offer on the medical reactor specifically?

MR. KELLY: The offer to enrich their uranium outside of Iran.

QUESTION: So that's not dead?

MR. KELLY: That's not dead.

QUESTION: Despite their seeming total lack of interest in it?

MR. KELLY: It - the offer remains on the table.

QUESTION: So you're hoping that even though they've said they don't want it --

MR. KELLY: I don't know if "hope" is the right word, but it's still - it's there. I mean, if they want to make that choice, it - the door is still open.

QUESTION: The door is still open. And how unified does the U.S. believe the Iranian Government is on the statements that have come out of some Iranian politicians about withdrawing from the NPT?

MR. KELLY: Yeah. It's just I'm not going to try and do a political analysis of the internal situation in Iran right now. I think we've seen quite a few voices out there. We understand that this is presenting a certain challenge in getting Iran to respond positively to this, but it's not my place to analyze what's going on inside Tehran right now.

QUESTION: Ian?

MR. KELLY: Yeah, Mark.

QUESTION: How much preparation and spade work has the U.S. done in terms of potential sanctions, types of sanctions, with allies and with countries that have historically been reluctant to impose sanctions - how much of that is already underway?

MR. KELLY: Well, I think what we're doing right now is we're - I mean, we have been pursuing the engagement track and we've made some really good proposals, and we've offered to sit down with them again. We've offered - the P-5+1 has offered to pursue some of these discussions. And they haven't responded to our - the IAEA's offer and they haven't responded to the P-5+1 offer. We've said all along that the - we, meaning the P-5+1, has said that we are pursuing a dual-track strategy. And as I said just a few minutes ago, if they can't respond positively to this offer, we're going to have to start shifting to the other side, to the pressure track. I don't think it's productive for me to get into some of the additional measures that we would take, but all along it's been our policy of pursing simultaneously both options.

QUESTION: But you don't start from zero on the day you switch to the pressure track.

MR. KELLY: No. No, we don't. No, I mean, like I say, but it's not - it's not - I don't think it's helpful for me to talk about specific sanctions.

QUESTION: Related?

MR. KELLY: Yeah.

QUESTION: The Russian minister of energy is in Iran today, and he has said that there's still good scope for continuation of the negotiations. And the Iranian speaker - the speaker of the Iranian parliament today toned down his comments from - as compared with Sunday's. He also talked about the possibility of continuing the negotiations. Is the Russian minister carrying any messages on behalf of the P-5+1 possibly?

MR. KELLY: Well, I haven't seen what Mr. Shmatko said in Tehran. I do know that we have supported the Russian proposal to provide fuel for the Bushehr plant. I think it highlights, once again, that the international community stands ready to provide the kinds of enrichment needs that Iran would have to pursue a civilian nuclear energy program. That's part of what the Bushehr proposal is. That's what the Russian fuel bank proposal that the IAEA Board of Governors just endorsed last week. And of course, it's the heart of the IAEA program, that there's no need for Iran to pursue enrichment. In fact, it is a serious violation of four different UN Security Council resolutions which call on Iran to cease their enrichment activities.

QUESTION: So is he possibly carrying a message or not?

MR. KELLY: Well, as I said, the P-5+1 is united in this approach on Iran in supporting the IAEA proposal. The Russian Government has put out statements in support of the Board of Governors resolution. So I think that we are - we do have a consistent message to Iran.

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