Brazil has rejected the American appeal for new sanctions on Iran over its nuclear programme. The Brazilian President called for a negotiated settlement of the issue. The American Secretary of State, Hillary Clinton said on Wednesday in the Brazilian capital Brasilia, that any talks with Iran over its nuclear issue would be possible only after a new round of sanctions. The US fears that Iran is developing nuclear weapons. Tehran denies the charge. Washington wants Brazil, which enjoys good ties with Iran, to support its push for a fourth round of UN sanctions against Tehran over its refusal to stop enriching uranium.