In a resolution adopted unanimously, the 15-member council directed all states "to prevent the supply, sale or transfer ...of all items, materials, equipment, goods and technology which could contribute to Iran's nuclear and ballistic missile programs."

It also mandated that "all states shall freeze the funds, other financial assets and economic resources" owned by people or entities linked to "Iran's proliferation sensitive nuclear activities or the development of nuclear weapon delivery systems."

Russia's UN ambassador Vitaly Churkin, who worked hard to soften the resolution, expressed hope that Iran would "correctly and very seriously take measures to correct the situation."

He made it clear that the sanctions would be lifted if Iran complies with demands of the council and the international Atomic Energy Agency.

US acting Ambassador Alejandro Wolff said the council expected Iran's full, unconditional and immediate compliance" with the resolution, warning that "we will not hesitate to return to this body for further action" if Iran does not comply.

"Without further delay"

The text, drawn up by Britain, France and Germany, requires the Islamic Republic to "without further delay suspend all enrichment-related and reprocessing activities, including research and development" as well as "all heavy water-related projects."

The resolution warns that if Tehran refuses to comply with UN demands, the Council "shall adopt further appropriate measures under Article 41 of Chapter Seven" of the UN charter, a reference to non-military sanctions.

The vote took place exactly two months the three Europeans first introduced their sanctions draft resolution following Iran's failure to comply with an August 31 council deadline to halt its sensitive nuclear fuel work.

The European text was amended several times, notably to overcome Russian objections, as Moscow and Beijing, which have close economic and energy ties with Tehran, deemed it too tough and likely to irk the Iranians while Washington sought a tougher text.

Warning from Tehran

In Tehran, senior Iranian lawmakers warned Saturday ahead of the vote that parliament could hit back at any sanctions by blocking UN inspections of its nuclear facilities.

A bill to suspend inspections of Iran's atomic sites by the UN nuclear watchdog has already been prepared by parliament and passed by its security and foreign affairs committee.

Western countries pushed hard for the sanctions fearing that Iran could use its uranium enrichment activities to develop nuclear weapons.

Iran says its nuclear program is strictly peaceful and aimed at providing electricity for a growing population.

Thursday Iranian President Mahmoud Ahmadinejad vowed that nothing would stop Iran from pushing ahead with its nuclear program.

"The bullying powers today, in confronting Iran's peaceful nuclear technology, are faced with a sea of courageous people," Ahmadinejad said in a speech.