The European Union agreed on Saturday to try to clarify Iran's stance on halting uranium enrichment within two weeks and U.N. Secretary-General Kofi Annan held talks in Tehran to try and settle the standoff. Annan's visit to Iran takes place two days after the U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), reported Tehran had failed to meet the U.N. Security Council's Aug. 31 deadline to suspend sensitive work. The United States, which accuses Iran of seeking atomic bombs, said on Friday it was consulting European governments about possible sanctions against the Islamic Republic, but the EU signalled it wanted to see more dialogue with Tehran which says its atomic activity is aimed at producing power. Annan met Iran's chief nuclear negotiator, Ali Larijani. "I have just had very good and constructive discussions with Mr Larijani. As you can imagine we discussed the nuclear issue and many other issues of concern to Iran and to the United Nations," Annan said after the meeting. Annan will meet Iranian President Ahmadinejad on Sunday.