The council vote was 14 to 1, with Qatar, the only Arab member, voting against.

The resolution, which followed weeks of negotiations, demanded that Iran "suspend all enrichment-related and reprocessing activities, including research and development."

If Tehran does not comply by August 31, the council would consider adopting "appropriate measures" under Article 41 of Chapter 7 of the U.N. Charter, which refers to economic sanctions.

The resolution was the first on Iran to include legally binding demands and a sanctions threat. The United States and its allies suspect Iran is developing a nuclear bomb and accuse it of hiding its research for the past 18 years.

"It's a strong resolution," President Bush told reporters during a trip to Miami.

"The Iranians must hear loud and clear with this resolution the world's intent, upon working together, to make sure that they do not end up with a nuclear weapon," Bush said.

Iranian U.N. Ambassador Javad Zarif, in a lengthy statement complaining about a long history of Tehran's mistreatment by the West, repeated his government's position that its nuclear program was for peaceful purposes only.

"The people and government of the Islamic Republic of Iran are determined to exercise their inalienable right to nuclear technology for peaceful purposes," Zarif told the council.

"Iran's peaceful nuclear program poses no threat to international peace and security and therefore dealing with this issue in the Security Council is unwarranted and void of any legal basis or practical utility," he said.

While U.S. Ambassador John Bolton characterized Zarif's address as a rejection, Russia's U.N. Ambassador Vitaly Churkin said he preferred to view Iran's response in a positive light because Zarif did not specifically use the word "rejection."

Bolton said Iran had been out of compliance with demands of the U.N. nuclear watchdog agency, the International Atomic Energy Agency, for three years.

"Sadly, Iran has consistently and brazenly defied the international community by continuing its pursuit of nuclear weapons, and the continued intransigence and defiance of the Iranian leadership demands a strong response from this council," Bolton said.

Russia and China are reluctant to impose sanctions and Churkin has said the sanctions provision meant the council would have "a discussion" only on punitive measures.

Germany and the council's five permanent members with veto power -- the United States, Russia, China, France and Britain -- negotiated the text. The six in June offered a package of energy, commercial and technological incentives if Iran suspended it uranium enrichment work. Iran has said it will respond on August 22.

British Foreign Minister Margaret Beckett and London's U.N. Ambassador Emyr Jones Parry both urged Iran to accept the incentive package and thereby avoid sanctions.

Chapter 7 of the U.N. Charter makes a resolution mandatory and provides options for enforcement. The document excludes any military action.

Qatar's U.N. ambassador, Abdulaziz Al-Nasser, said he voted "no" because of the conflict between Israel and Hizbollah militants. "We do not agree with the resolution at a time when our region is in flames," he said.

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