Middle East, Nuclear | featured news

An Iranian envoy voiced hope on Monday that talks with the U.N. nuclear watchdog in mid-May would help resolve "outstanding issues", but he again ruled out any halt to Tehran's controversial uranium enrichment program.

In what would be a significant concession, Obama administration officials say they could support allowing Iran to maintain a crucial element of its disputed nuclear program if Tehran took other major steps to curb its ability to develop a nuclear bomb.

After a 15-month break, Iran and the world's major powers are about to start a new round of nuclear talks. During the last round of negotiations held in January 2011, Iran and the world powers agreed on almost nothing. In recent weeks, negotiators struggled even to agree upon where they should meet for this new round - for a while, Iran held out for Baghdad as a venue.

Iran's nuclear chief signaled Tehran's envoys may bring a compromise offer to the talks this week with world powers: Promising to eventually stop producing its most highly enriched uranium, while not totally abandoning its ability to make nuclear fuel.

U.S. President Barack Obama said on Friday he has determined there is enough oil in the world market to allow countries to cut imports from Iran, allowing Washington to begin sanctioning countries that continue to buy Iranian oil.

President Barack Obama on Monday emphasized his vision for a nuclear-free world and warned that North Korea and Iran should shun nuclear weapons or face tough action from the international community.

President Obama will join the leaders of more than 50 countries in Seoul, South Korea, next week for a nuclear security summit.

The United States exempted Japan and 10 EU nations from financial sanctions because they have significantly cut purchases of Iranian crude oil, but left Iran's top customers China and India exposed to the possibility of such steps.

The body that handles global banking transactions says it will cut Iran's banks out of the system on Saturday to enforce EU sanctions.

Nine years ago, the United States invaded Iraq after telling the world that Saddam Hussein had covert weapons programs that could build nuclear arms. In the end, nothing was found. Today, acting on similar fears, Israel is threatening to attack Iran.