UK says failure to reach Iran nuclear deal could lead to Middle East arms race

LONDON (Reuters) - Failure to reach a deal on Iran's nuclear programme would mean a "fundamentally" more unstable Middle East and the prospect of a nuclear arms race in the region, British Foreign Secretary Philip Hammond said. Talks between major powers and Iran on Tehran's nuclear programme are due to resume in Switzerland later this week. "Agreement is deliverable if we continue on this track. But to reach it, the time has come for Iran to show flexibility and take tough decisions," Hammond said in a speech in London late on Wednesday, according to extracts released by his office. "I remain clear that no deal is better than a bad deal. But we should also be clear-eyed about the alternative. No deal means no restrictions on enrichment, no restrictions on research and development, and no independent monitoring or verification. It means a fundamentally more unstable Middle East, with the prospect of a nuclear arms race in the region." China, Russia, the United States, Germany, France and Britain are trying to reach a framework deal with Tehran by the end of the month that would restrict the most sensitive aspects of Iran's atomic programme in return for an easing of international sanctions. Iran denies that it wants to acquire nuclear weapons. (Reporting by Kylie MacLellan)