Iran has claimed a significant breakthrough in its nuclear program, saying its scientists have tested its own nuclear fuel rod.

Under the United Nations sanctions, countries are forbidden to sell Iran the technology to make the rods, which are tubes containing pellets of enriched uranium that provide fuel for reactors.

The International Atomic Energy Agency reported last year that Iran is attempting to build a nuclear weapon. However, the Islamic Republic has repeatedly claimed it's only developing nuclear energy for peaceful purposes.

Observers say if Iran has the know-how to build its own fuel rods, then its nuclear program may be further along than was previously believed. The development could soon force a confrontation between Iran and the U.S or Israel.

Meanwhile, Iran finished 10 days of naval exercises in the Persian Gulf on Monday.