Iran begins talks with ‘big six’ powers over ending economic boycott

Talks between Iran and six world powers over the Islamic country's nuclear programme began in Vienna today, with Iran expected to agree to a nuclear scale-down for drafting a lasting accord that would lead to a phased end of sanctions that have hobbled the Iranian economy.

After three months of floating expectations rather than negotiating possible compromises, the sides now aim to devise a package meant to end years of antagonism and curtail the risk of a wider Middle East war with global repercussions.

Washington's decades-long estrangement from Iran could ease, improving international stability, if a deal were done but US officials warned against unwarranted optimism given persisting, critical differences between the sides.

In the next two months, the United States, Russia, China, France, Britain and Germany will want Iran to agree to dramatically cut back its uranium enrichment programme, which they fear could lead to the making of atomic bombs, while Iran wants them to eliminate sanctions against its oil-based economy.

Diplomats from both sides have said they want to resolve all sticking points about issues such as Iran's capacity to enrich uranium and the future of its nuclear facilities, as well as the timeline of sanctions relief, by the deadline of 29 July set earlier.

After that, an interim deal they struck last November expires and its extension would probably complicate talks (See: Iran to allow IAEA inspectors into Arak nuclear facility).

An accord in two months is far from assured, with Western diplomats warning that divisions could prove insurmountable.

"Quite frankly, this is very, very difficult," a senior US official told reporters on the eve of the talks, speaking on condition of anonymity.

"I would caution people that just because we will be drafting it certainly does not mean an agreement is imminent or that we are certain to eventually get to a resolution."

A spokesman for EU foreign policy chief Catherine Ashton, who coordinates diplomacy with Iran on behalf of the six, said negotiators held a "useful initial discussion" on Wednesday morning and would hold coordination meetings later in the day.

"We are now hoping to move to a new phase of negotiations in which we will start pulling together what the outline of an agreement could be. All sides are highly committed."