It seems like everyone is clamoring about Iran continuing uranium enrichment and the US wants to refer Iran to the UN Security Council and impose sanctions. The issue here is whether Iran has breached the Nuclear Non-Proliferation treaty (NPT). If not then either the US and EU stop harassing Iran, or review the NPT to exclude fuel and ask Iran to agree to that. Under the NPT and provided that it fulfils its IAEA obligations, Iran is entitled to not only have nuclear power plants, but to convert and enrich uranium to fuel such power plants. Nuclear energy does not equal nuclear weapons. It's true that mastery of nuclear fuel cycle is just one step below producing nuclear weapons, and there is a risk that Iran could abandon the NPT and develop nuclear weapons, but that is not the case at the moment.
Article VI of the NPT says: "Each of the Parties to the Treaty undertakes to pursue negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and to nuclear disarmament, and on a Treaty on general and complete disarmament under strict and effective international control." Isn't the US violating the NPT with its plans to develop earth-penetrating "bunker busters" and mini-nukes? There is also the fact that nothing is being done to stop Pakistan (which receives multi-billion dollar military aid packages from the US) and India from further development of their nuclear weapon programmes (neither of these countries are NPT signatories).
Iran is claiming that it wants to continue its uranium enrichment to develop its civilian nuclear energy program, and unless it's proven by the IAEA that Iran is developing nuclear weapons then there is no violation of international law and no reason for imposing sanctions on Iran by the UN.
It appears to me that the US is basically concerned with its inability to impose its agenda on Iran and is using the NPT against NPT signatory states (like Iran) that are not in-step with the US policies. I realize that Iran, once it fully develops a civilian nuclear energy program, could pontetially drop the NPT and start producing nuclear weapons. However, with the US openly threatening to use nuclear weapons at its own discretion, a crossover from civilian to military nuclear programmes and development of a limited nuclear defense capability by Iran would not be unexpected in the future. After all, Iran is being actively threatened by US, a superior military power, and its only possible deterent in the case of a US invasion would be nuclear weapons.
Regardless, the current issue is whether the Iran has violated the NPT, something that hasn't been but would need to be proven by the IAEA, in which case UN sanctions could be applied to Iran. Sanctions without a proof of violation of the NPT by Iran are illegal.
Edit: Grammar