Iran did not respond to the major powers' proposal on resolving the dispute over its nuclear ambitions during a meeting with European Union envoy Javier Solana, a U.S. official said on Thursday.

Workers rest at Ras Tannura's oil production plant near Dammam in Saudi Arabia's eastern province in 2004. World oil prices simmered near record highs as traders fretted over record US gasoline (petrol) demand and geopolitical concerns linked to North Korea and Iran.[AFP\File]

The official said in an email to reporters that Secretary of State Condoleezza Rice spoke with Solana after his meeting with Iranian negotiator Ali Larijani and that "no response to the P5 plus one proposal was given," a reference to the permanent five members of the U.N. Security Council and Germany.