In his annual speech on French diplomacy in Paris, Sarkozy said “more decisive” sanctions were needed to stop the purchase of Iranian oil and freeze the assets of the central bank.

“Everything will be done to avoid military intervention… but time is running out,” he said.

The sanctions are expected to be approved by European Union foreign ministers on Monday.

The United States and Israel have refused to rule out military intervention over suspicions that Iran, which recently began producing enriched uranium at an underground plant, may be developing nuclear arms.

Iran insists its program is peaceful.

Russian Foreign Minister Sergei Lavrov warned on Wednesday that a Western attack on Iran would be a “catastrophe” and “would pour oil on the still smoldering fire of Sunni-Shia confrontation.”