Israel has called on world powers to immediately stop nuclear talks with Iran, citing an IAEA announcement that Tehran has begun producing enriched uranium using more advanced centrifuges, Reuters reports.

"Iran is carrying out nuclear blackmail as a negotiating tactic, and this should be answered by the immediate halt to negotiations and the implementation of tough steps by the world powers," Prime Minister Naftali Bennett's office quoted him as saying in a call with U.S. Secretary of State Antony Blinken.

An Israeli official said Bennett had told Blinken of his objections to lifting sanctions against Iran, especially as part of an interim deal that would effectively mean a "massive flow of funds to the Iranian regime".

In a video interview on Thursday with Israel's YNet news website, Defence Minister Benny Gantz voiced confidence that U.S. President Joe Biden would make good on a promise not to let Iran obtain nuclear weapons.

"I don't think we are alone. I do think we always have to prepare the option for the moment when we may find ourselves alone," he said. "I say again, an attack (on Iran) is an option. It doesn't have to be the first one."