Iran said it was in communication with major powers to resume discussions on its nuclear program, but both Washington and the European Union denied this and called on Tehran to demonstrate its willingness to participate. A year after the breakdown of the last talks, tensions are rising over Iran's nuclear activities, which the US and other nations claim are aimed at developing nuclear weapons. Iran denies these allegations. The EU is getting ready to strengthen sanctions against Iran, including an embargo on its crucial oil exports. EU diplomats announced on Wednesday that member states had also agreed in principle to freeze the assets of Iran's central bank, but were still deciding on how to shield non-oil trade from sanctions. Iran has warned that it may block the Strait of Hormuz, which is crucial for a third of the world's seaborne oil trade, if it is unable to sell its own crude oil. This has raised concerns about the possibility of a conflict in the Gulf region that could escalate tensions in the Middle East. Iranian officials have mentioned that U.S. President Barack Obama has shown willingness to engage in negotiations with Iran, which could potentially ease tensions and stabilize oil prices. Iranian Foreign Minister Ali Akbar Salehi stated during a visit to Turkey that discussions are ongoing regarding the location and timing of the negotiations, expressing a desire to participate in them. It is likely that Istanbul will be the chosen venue for the negotiations, although this is not yet confirmed. Washington denied that there were ongoing discussions about resuming talks, but did not confirm if Obama had sent a letter to Tehran. State Department spokeswoman Victoria Nuland stated that there were no current talks happening, but emphasized the importance of Iran being transparent about their nuclear program in order to resume a conversation. White House spokesman Jay Carney also declined to comment on the reports of a letter, stating that diplomatic communications are not discussed. The United States is urging countries to decrease their purchases of Iranian oil in accordance with a new sanctions law signed by Obama on December 31st, which aims to limit Tehran's ability to sell crude oil. The State Department's statement was supported by a spokesperson for EU foreign policy chief Catherine Ashton, who represents the six world powers attempting to engage with Iran. "There are currently no discussions happening regarding new talks," he stated in Brussels. "We are still waiting for Iran to respond to the detailed proposals made by the High Representative (Ashton) in her letter from October." British Foreign Secretary William Hague emphasized the necessity for Iran to be prepared for serious negotiations. He emphasized the importance of actual negotiations with Iran, even though there have been talks of imposing additional sanctions in the European Union. He stated that the pressure for peaceful but justified actions will persist if meaningful negotiations do not take place. He mentioned that Tehran claims its nuclear enrichment is for energy and medical purposes, not for developing nuclear weapons. Defense Secretary Leon Panetta stated that the US military is fully prepared to address any threats from Iran regarding the closure of the Strait of Hormuz. Ashton emphasized in a letter to Iranian negotiator Saeed Jalili that the West is still interested in resuming talks, but Iran must be willing to participate in meaningful discussions about ensuring the peaceful nature of its nuclear activities. Iran has consistently pushed for discussions on broader international security issues rather than solely focusing on its nuclear program during sporadic meetings over the past five years. The last negotiations between Iran and the permanent members of the U.N. Security Council, along with Germany, came to a standstill in Istanbul a year ago due to the inability to agree on an agenda. A report from a U.N. nuclear watchdog has heightened concerns about Iran's nuclear weapon development efforts since then. EU foreign ministers are likely to approve a gradual ban on Iranian oil imports at their upcoming meeting on January 23. This decision comes after the United States implemented a law that would prevent any institution from doing business with Iran's central bank, effectively preventing most countries from purchasing Iranian oil. According to an EU diplomat, progress has been made regarding the central bank issue, with widespread agreement on the principle. However, discussions are ongoing regarding the specifics. Iran has expressed willingness to negotiate, but has also started moving its uranium enrichment to a more secure location to protect it from potential air strikes by Israel if diplomatic efforts to curb its nuclear program fail. According to Western diplomats, Tehran needs to demonstrate a willingness to change its stance in any future negotiations. Tehran insists that other countries must respect its right to enrich uranium, a nuclear fuel that can be used for atomic bombs if enriched to higher levels than necessary for power plants. Russia, a member of the six power group critical of new EU and U.S. sanctions, warned that a military option suggested by the United States and Israel could lead to a destructive war in the Middle East. Israeli Prime Minister Benjamin Netanyahu, visiting the Netherlands, reiterated that Iran should not be allowed to acquire nuclear weapons. Earlier in the day, Defence Minister Ehud Barak stated that a decision on an Israeli attack on Iran was unlikely to happen anytime soon. Threats and Friendship: China, which has similar concerns to Russia about Western efforts to halt Iran's oil exports, criticized U.S. sanctions signed by Obama on December 31 as lacking legal justification. Iranian officials claimed that Obama had written to Ayatollah Ali Khamenei in response to Iran's threat to close the Strait of Hormuz due to sanctions. Members of Iran's parliament discussed the letter on Wednesday, revealing that it included an offer for direct negotiations. Lawmaker Ali Mottahari stated that the letter identified the closure of the Strait of Hormuz as a 'red line' for the U.S. and requested talks.