At 8:07 am ET: Britain Rules Out Military Action on Iran.

BRIGHTON, England - Military action against Iran is inconceivable and diplomacy could still end the international standoff over Tehran’s nuclear program, said British Foreign Secretary Jack Straw, whose country plays a key role in negotiations.

Iran insists its nuclear program is designed for generating electricity, but the Bush administration believes Tehran intends to produce atomic weapons and has refused to rule out military strikes.

“All United States presidents always say all options are open. But it is not on the table, it is not on the agenda. I happen to think that it is inconceivable,” Straw told British Broadcasting Corp. radio on Wednesday.

At 10:36 am ET: Iranians mob UK embassy over IAEA nuclear vote.

TEHRAN (Reuters) - Scores of protesters incensed by European Union moves to send Iran’s nuclear case to the U.N. Security Council hurled stones and smoke bombs over the walls of the British embassy compound in Tehran on Wednesday.

The violence, easily contained by riot police, coincided with a vote by lawmakers to speed discussion of a bill that would force the government to scale back its cooperation with the U.N. atomic watchdog, state media reported. The bill to limit the scope of nuclear inspections is in retaliation for a resolution approved by the International Atomic Energy Agency (IAEA) board of governors last week recommending Iran’s case be sent to the U.N. Security Council. If approved, the bill would oblige the government to stop implementing the Additional Protocol of the nuclear Non-Proliferation Treaty (NPT) which allows U.N. inspectors to make short-notice visits to nuclear facilities.

About 300 protesters gathered outside the British embassy in Tehran on Wednesday to denounce the IAEA resolution submitted by Britain, France and Germany. “Nuclear energy is our legitimate right,” they chanted. “We will fight, we will die, we will never surrender.”

During the protest, organized by the hardline Basij militia, British and U.S. flags were burned. Groups of protesters hurled stones, tomatoes and smoke bombs into the walled compound and some tried to push past police to reach the embassy’s main gate.

Young women in black head-to-toe chadors held placards which said: “We are your serious enemies” and “The den of the old fox should be closed” — a reference to London’s reputation for cunning and deceit in Iran.

One protester, his forehead cut by a police baton, left two bloody handprints on the embassy’s brass name plate.