Feb. 4 (Bloomberg) -- Iran said the launch of its first domestically built satellite serves no military purpose, rejecting Western concerns the technology could be used to develop long-range ballistic missiles.

“This is a scientific and technical achievement and has no military aims,” Iranian Foreign Ministry spokesman Hassan Qashqavi said today, the state-run Press TV news agency reported.

The launch of the Omid satellite two days ago, timed to coincide with the 30th anniversary of Iran’s Islamic revolution, prompted criticism from the U.S., U.K. and France, which are seeking to keep Iran from building nuclear weapons.

Senior diplomats from the three nations, plus China, Russia and Germany, gathered today to review their strategy toward Iran’s nuclear program.

The meeting in Wiesbaden, Germany, was the first since President Barack Obama took office on Jan. 20, saying he supports “tough and direct diplomacy with Iran without preconditions” and will “use the power of American diplomacy to pressure Iran to stop their illicit nuclear program.”

The Bush administration ruled out talks with Iran unless the country ended uranium enrichment work.

Obama’s Stance Welcomed

The diplomats, including U.S. Undersecretary of State for Political Affairs William Burns, welcomed “the willingness of the U.S. administration, as expressed by President Obama, to engage in talks with Iran,” the German Foreign Ministry said in a statement today.

They urged Iran to cooperate with the United Nations nuclear watchdog, the International Atomic Energy Agency, and said they will “consult on the next steps as the U.S. administration undertakes its policy review.”

The U.S. and some allies, including Israel, say Iran is seeking to develop nuclear arms. Iran says its uranium enrichment program only aims to produce fuel for nuclear power plants to meet the country’s growing electricity demand.

Iran, the second-largest oil producer in the Middle East, is under three sets of UN sanctions after the IAEA sent the dispute to the Security Council in March 2006.

New Sanctions

Leaders of Germany and France said they may back new sanctions if diplomacy fails to halt “the Iranian threat.”

“We will not permit an Iranian nuclear bomb because this would threaten world peace,” German Chancellor Angela Merkel and French President Nicolas Sarkozy said in an article published today in the Sueddeutsche Zeitung newspaper. “We favor a diplomatic solution.”

Russia’s Deputy Foreign Minister Sergei Ryabkov today reiterated his government’s position that this isn’t the time to impose further sanctions on Iran, Interfax reported.

Israeli Defense Minister Ehud Barak today called for tougher international sanctions against the government in Tehran, saying the satellite launch boosts Iran’s “military potential in the intelligence sector.”

The U.S. State Department said yesterday Iran’s development of a space-launch vehicle gives the country the “technical basis” to advance its missile program, adding the issue is a “matter of acute concern.”

The Iranian government portrays developments in nuclear and space programs as a matter of pride and a sign of its independence from Western countries. Iran accuses the West of seeking to isolate it and limit the nation’s technological advancement.

President Mahmoud Ahmadinejad said yesterday the satellite launch will enhance the country’s standing in the world.

To contact the reporters on this story: Ladane Nasseri in Tehran at lnasseri@bloomberg.net; Tony Czuczka in Berlin at aczuczka@bloomberg.net.

Last Updated: February 4, 2009 10:16 EST