European leaders said Iran has not done enough yet to fend off so-called snapback sanctions related to Tehran nuclear program as a tight deadline nears, although the sides agreed to continuing talking while the clock ticks down.

"Diplomacy has a chance. The deadlines are running, and let's see. We need to see some real action also on the Iranian side," European Union foreign policy chief Kaja Kallas said on September 23 after meeting with Ian's foreign minister.

The foreign ministers of France, Britain, and Germany -- known as the European 3 (E3) -- along with Kallas held talks with their Iranian counterpart, Abbas Araqchi, on the sidelines of the UN General Assembly.

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Ahead of the meeting, German Foreign Minister Johann Wadephul said that "it must be clear to everyone that, after all of Iran's delaying tactics, the possibilities and chances of reaching a diplomatic solution before sanctions are triggered are extremely slim."

After the session, a French diplomatic source told Reuters that talks will continue to "explore all possibilities to the fullest" to avoid the reimposition of UN sanctions.

Iran's Foreign Ministry said in a statement: "In light of the unjustified and illegal move to begin reinstating the UN Security Councils sanctions, some ideas and proposals for continuing diplomacy were raised during the meeting, and it was agreed that consultations will continue."

The E3 on August 28 initiated a 30-day process to reimpose the sanctions, a period that would end on September 27.

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The European nations accuse Iran of failing to abide by a landmark 2015 deal the Joint Comprehensive Plan of Action (JCPOA) -- with world powers aimed at preventing it from developing a nuclear weapon in return for an easing of sanctions.

Iran started to roll back its commitments after President Donald Trump, in his first term, withdrew the United States from the deal in 2018 and reimposed crippling sanctions against Tehran.

Iran suspended cooperation with the International Atomic Energy Agency in July in response to the US and Israeli bombing of its key nuclear sites in Fordow, Isfahan, and Natanz. One of the conditions that the E3 had set to delay the process was for Tehran to resume full cooperation with the UN nuclear watchdog before the end of August.

The sanctionsrelated to the nuclear deal and other issues have severely damaged the Iranian economy and often led to street unrest amid rising prices and shortages of crucial goods and energy supplies. They have also stymied Iranian industry as important sectors have been cut off from replacement parts and other resources.

UN nuclear watchdog chiefRafael Grossitold Reuters there were "intense" conversations between him, Iran, European powers, and the United States in an effort to reach a settlement.

Tehran has remained defiant in the face of Western pressure concerning its nuclear program and uranium enrichment procedures.

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Supreme Leader Ayatollah Ali Khamenei has rejected possible negotiations with Washington on the issue.

"Under the current circumstances, negotiations with the US government are of no benefit to our national interest," the cleric said in a speech broadcast by Iranian state TV.

Khamenei accused Trump of not wanting to hold genuine talks, pointing to the US demand that Tehran completely cease uranium enrichment or limit the range of its missiles.

"This is not a negotiation, this is a dictate," Khamenei said.

Iranian President Masud Pezeshkian considered to be a moderate by many observers but with limited powers said he favors dialogue in international relations.

"But you cannot negotiate with someone who wants to demonstrate power, tyrannize, destroy, and cause harm," he added, without mentioning names.

French President Emmanuel Macron said he planned to meet with Pezeshkian at the UN on September 24.

"Either Iran makes a gesture and goes back to the path of peace and accountability that make it possible to get back on course...or sanctions will have to be imposed," Macron said.