Speaking at a press conference after the foreign ministers' meeting, Catherine Ashton, EU's high representative for foreign affairs and security policy, said, "I think today we sent a powerful message to Iran, and that message is that their nuclear program is a cause of serious and growing concern to us."

Though the new sanctions levied by the EU were a "comprehensive and robust package" and went well beyond UN sanctions agreed last month, "our objective remains to persuade Iranian leaders that their interests are served by a return to the (negotiating) table," she said.

The foreign ministers during their meeting reaffirmed the EU's commitment to working for a diplomatic solution to the controversial Iran nuclear issue, and backed a call to Tehran to resume meaningful negotiations.

Sticks and carrots

As these unilateral sanctions roll out, Tehran is responding with both sticks and carrots.

Iranian President Mahmoud Ahmadinejad warned the EU on Sunday not to join U.S. "plots" against Iran, saying any cooperation with Washington would be regarded as hostile by the Iranian people and any actions against it would be met with speedy responses.

However, despite the defiant vows language, the Iranian government has begun to voluntarily flash signs of cooperation.

On the same day the EU approved its sanctions, Tehran sent a letter to the International Atomic Energy Agency (IAEA), saying it is ready to restart talks with the agency on the nuclear fuel swap plan under no conditions.

Analysts say it is still too early to tell whether these mixed messages are stalling tactics or real compromises.

Iran sits on the world's second largest oil and gas reserves, making it capable of achieving energy self-sufficiency. Thus, besides worsening the country's already poor business environment, additional sanctions will only affect Iran's gasoline supply in the short term without getting the ideal results these punitive measures are designed to produce.