Iran's supreme leader has denied it is developing nuclear weapons, after a new report from the UN atomic watchdog, the IAEA, sparked an international outcry. Ayatollah Ali Khamenei said the outcry was "baseless" as Iranians do not believe in atomic weapons and are not seeking that. <br/><br/>The blunt report raised concerns that Iran was working on nuclear weapons. Germany said Iran's failure to comply with UN wishes over its nuclear programme was forcing the international community to pursue further sanctions against Tehran. While the US warned Iran it faced consequences if it failed to meet international responsibilities. Moscow said Iran must co-operate more actively with the International Atomic Energy Agency to convince the world its programme was peaceful.<br/><br/>Meanwhile, Iran launched its first domestically built destroyer, reportedly equipped with sophisticated radar, anti-ship and surface-to-air missiles as well as torpedoes and naval guns. Reports say, the new 1,500-tonne guided missile destroyer, Jamaran, would be deployed in the Gulf.