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VIENNA, May 25 (Reuters) – Iran has raised its potential

capacity to make sensitive nuclear material by installing

hundreds more uranium enrichment machines at an underground

site, a U.N. watchdog report said, a day after world powers

failed to convince Tehran to halt such activity.

The International Atomic Energy Agency also said on Friday

that it had found traces of uranium particles enriched to up to

27 percent at Iran’s bunkered Fordow site, compared with the 20

percent enrichment Tehran has officially reported to the IAEA.

The IAEA said Iran had told the U.N. agency that this

higher-grade enrichment “may happen for technical reasons beyond

the operator’s control”.

(Reporting by Fredrik Dahl; Editing by Mark Heinrich)