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The International Atomic Energy Agency is badly policing Iran's nuclear program, Israeli occupation Prime Minister Benjamin Netanyahu claimed on Sunday before arguing that the IAEA was becoming "politicized" and "irrelevant".

This comes after the IAEA issued a report last week saying Iran had answered all questions on one case of suspected uranium particles, installing some monitoring equipment originally put in place under the 2015 nuclear deal, which was nullified after the United States withdrew from it.

"Iran is continuing to lie to the International Atomic Energy Agency. The agency's capitulation to Iranian pressure is a black stain on its record," Netanyahu told his cabinet in televised remarks.

"If the IAEA becomes a political organization, then its oversight activity in Iran is without significance, as will be its reports on Iran's nuclear activity," the Israeli occupation premier added.

Iran gave a satisfactory answer, explaining one of three sites at which uranium particles had been detected, the IAEA said Wednesday.

The particles in question could be explained by the presence of a Soviet-operated mine and lab there and the IAEA had no further questions, a senior diplomat in Vienna said.

"Iran's excuses ... regarding the finding of nuclear material in prohibited locations are not only unreliable, they are technically impossible," Netanyahu said in response to the IAEA statement regarding the matter.

"In the event that we reach decision-point, where the two options are the Iranians breaking out to a bomb or us taking action, we will take action," Israeli Energy Minister Israel Katz said.

"We are making all of the preparations at this very moment," Katz told Galey Israel radio.

In a blow to the Israeli occupation, the IAEA decided to close the file relating to nuclear material at an allegedly "undeclared site" that Israeli Prime Minister Netanyahu brought up in a speech in September 2019, after receiving a "possible explanation" from Iran, a report by the UN nuclear watchdog seen by AFP confirmed on Wednesday.

The IAEA "has no additional questions... and the matter is no longer outstanding at this stage," the report indicated of the site at Marivan in Abedeh County.

The IAEA had reported the discovery of traces of radioactive material at three allegedly "undeclared sites" by Iran.

The Marivan site in the southern province of Fars is the first to be addressed under a work plan agreed upon by Iran and the IAEA in March. The other two sites are Varamin and Turquzabad.

Touching on the matter, Israeli journalist Barak Ravid tweeted, "This is a dramatic decision by the IAEA that closes one of the most significant open investigations against Iran in recent years, calling it "a severe blow to Israel."

Read more: Iran committed to giving IAEA any needed info: Naziri - Exclusive

IAEA claims Iran significantly increased stockpile of enriched uranium

In a separate IAEA confidential report seen by AFP, the UN nuclear watchdog claimed that Iran has significantly increased its stockpile of enriched uranium in recent months.

The reports came days before the board of governors of the IAEA is due to meet to review progress in addressing the watchdog's remaining concerns.

The nuclear watchdog alleged in its report that Iran's estimated stockpile of enriched uranium had reached more than 23 times the limit set out in the landmark 2015 nuclear deal between Tehran and world powers.

It is noteworthy that Iran has always denied any ambition to develop a nuclear weapons capability, stressing that its activities are entirely peaceful.

Tehran has repeatedly dismissed Western-influenced IAEA reports that it increased its stockpile of enriched uranium

Read more: Iran's AEOI slams 84% uranium enrichment claims as false