TEHRAN – Iran's President Mahmoud Ahmadinejad on Sunday told Iran's Atomic Energy Organization to start work on producing nuclear fuel for a Tehran research reactor, casting renewed doubt on the prospects for an international swap deal. Ahmadinejad's announcement is likely to irritate Western powers who want Iran to send most of its stockpile of low-enriched uranium (LEU) abroad in return for higher-refined fuel for the Tehran reactor. Iranian officials have repeatedly said the Islamic Republic can make fuel enriched to 20 per cent itself if there is no agreement on obtaining the material from abroad. "We had told them (the West) to come and have a swap, although we could produce the 20 per cent enriched fuel ourselves," Ahmadinejad said in a televised speech. "We gave them two-to-three months' time for such a deal. They started a new game and now I (ask) Dr Salehi to start work on the production of 20 per cent fuel using centrifuges," he said, referring to Ali Akbar Salehi, who heads the atomic energy body. But he added: "The doors for interaction are still open." Ahmadinejad also said Iran had the capability to enrich uranium using laser technology, without elaborating. On Saturday, the United States and Germany said they saw no sign Tehran would make concessions on its nuclear program, despite upbeat comments from Iran's foreign minister over prospects for a deal. An accord on exchanging fuel could mark a breakthrough in the long-running dispute over Iran's nuclear programme, which the West fears could be used to produce an atomic bomb.