VIENNA (Reuters) – Iran has significantly stepped up its output of low-enriched uranium and total production in the last five years would be enough for at least five nuclear weapons if refined much further, a U.S. security institute said.

The Institute for Science and International Security (ISIS), a think-tank which closely tracks Iran’s nuclear program, made the analysis on the basis of data in the latest quarterly U.N. watchdog report which was issued on Friday.

Progress in Iran’s nuclear activities is closely watched by the West and Israel as it could determine how long it could take Tehran to build atomic bombs, if it decided to do so. Iran denies any plan to and says its aims are entirely peaceful.

During talks in Baghdad this week, six world powers failed to convince Iran to scale back its uranium enrichment program. They will meet again in Moscow next month to try to defuse a decade-old standoff that has raised fears of a new war in the Middle East that could disrupt oil supplies.

Friday’s report by the International Atomic Energy Agency (IAEA), a Vienna-based U.N. body, showed Iran pressing ahead with its uranium enrichment work in defiance of U.N. resolutions calling on it to suspend the activity.

It said Iran had produced almost 6.2 metric tons (6.83 tons) of uranium enriched to a level of 3.5 percent since it began the work in 2007 – some of which has subsequently been further processed into higher-grade material.

This is nearly 750 kg more than in the previous IAEA report issued in February, and ISIS said Iran’s monthly production had risen by roughly a third.

VIENNA (Reuters) – United Nations nuclear inspectors have found uranium particles refined to a higher-than-expected level at an underground site where Iran has installed more than 50 percent more enrichment centrifuges, a U.N. watchdog report said on Friday.

It said Tehran had told the U.N. agency that the presence of traces of highly refined uranium – still well below potential nuclear weapons-grade material – “may happen for technical reasons beyond the operator’s control”.

The United States – which like its Western allies and Israel accuse Iran of seeking to develop atomic bomb capability – said the Iranian explanation could be correct and a leading U.S. expert said he saw nothing “nefarious” in the discovery.

The International Atomic Energy Agency report came a day after six world powers – the United States, Russia, Britain, Germany, China and France – failed to convince Iran to halt its most sensitive nuclear work during May 23-24 talks in Baghdad.

At the heart of the dispute is Iran’s insistence on a right to enrich uranium and that economic sanctions should be lifted before it shelves activities that could lead to its achieving the ability to assemble nuclear weapons.

Western powers insist Tehran must first shut down higher-grade enrichment before sanctions could be eased.

Iran started enriching to a fissile concentration of 20 percent in 2010 and has since sharply expanded the activity, saying the material will serve as fuel for a medical reactor.

VIENNA (Reuters) – U.N. nuclear inspectors have found uranium traces in an Iranian underground site refined to a somewhat higher level than the enrichment work normally done there, but still well below the weapons-grade threshold, diplomatic sources said on Friday.

One source said the higher level detected at the Fordow site – where Iran has declared it is refining uranium to a fissile concentration of 20 percent only – was believed to be between 20 and 30 percent, making clear this was not a big difference.

“It is not up there … towards nuclear weapons capability,” the diplomat said. It could simply be a production glitch, but the U.N. nuclear watchdog had asked Iran to clarify the issue, since the agency is tasked with ensuring member states do not “weaponize” the enrichment process.

Iran started enriching to 20 percent in 2010 and has since sharply expanded the work, saying the material will serve as fuel for a medical reactor. But a suspicious West is alarmed since such enhanced enrichment accomplishes much of the technical leap towards 90 percent – or weapons-grade – uranium.

Another diplomatic source said he had also heard of the find but it was unclear whether it would be included in an IAEA report due to be released to member states later on Friday. The IAEA regularly inspects Fordow and other Iranian nuclear sites.

“My understanding is that the IAEA had found a particle or had tested a sample that had uranium enriched at a higher rate than had been declared at that facility,” the first source said of the find at Fordow.

Enriched uranium can be used to fuel power plants, which is Iran’s stated purpose, or provide material for bombs, if refined to a much higher degree, which the West suspects may be Iran’s ultimate goal. The Islamic Republic denies that.

VIENNA (Reuters) – A U.N. watchdog report is expected to show that Iran has installed more uranium enrichment centrifuges at an underground site, potentially boosting output capacity of nuclear work major powers want it to stop, Western diplomatic sources say.

Two sources said the Islamic state may have placed in position nearly 350 machines since February – in addition to the almost 700 centrifuges already operating at the Fordow facility – but that they were not yet being used to refine uranium.

If confirmed in the next quarterly report on Iran’s nuclear programme by the U.N. International Atomic Energy Agency, tentatively expected on Friday, it is likely to be seen as a sign of continued defiance by the Islamic state of international demands to suspend such activity.

Getting Tehran to halt its enrichment of uranium to a fissile concentration of 20 percent – which it started in 2010 and has since sharply expanded – was a key priority for world powers in their talks with Iran in Baghdad on Wednesday.

Progress in Iran’s nuclear programme is closely watched by the West and Israel as it could determine how much time it would need to build nuclear bombs, should it decide to do so.

Fordow, estimated to be buried beneath 80 meters (265 feet) of rock and soil, gives Iran better protection against any Israeli or U.S. military strikes and the shift of nuclear work to the site is of particular concern for the West.

The last IAEA report, published in February, said Iran had trebled output of 20 percent uranium since late 2011 after starting up production at Fordow near the Shi’ite Muslim holy city of Qom and later increasing it.

VIENNA (Reuters) – The U.N. nuclear watchdog director said on Tuesday he expected to sign a deal with Iran soon to unblock an investigation into suspected work on atom bombs, potentially brightening prospects for big-power talks with Tehran to stop a drift toward conflict.

Yukiya Amano was summarizing the outcome of rare talks he conducted in Tehran on Monday, two days before six powers meet Iran’s security council chief in Baghdad to test Iranian willingness to curb its nuclear program in a transparent way.

Amano, director-general of the International Atomic Energy Agency, said his wish for access to Iran’s Parchin military complex where nuclear weapons-relevant tests may have occurred would be addressed as part of the accord.

But the powers will be wary of past failures to carry out extra inspection deals between the International Atomic Energy Agency and Iran, and Western patience is wearing thin.

European sanctions to block Iran’s economically vital oil exports are to take force in July and Israel has mooted military action. A defiant Iran, which denies any ambition to acquire atom bombs, has threatened reprisals and oil prices have risen on fear of a new Middle East war hitting a wobbly world economy.

Amano acknowledged that “some differences” remained before the deal he discussed on his first visit to Tehran could be sealed, although chief Iranian negotiator Saeed Jalili had assured him these would not thwart agreement.

“The decision was made to conclude and sign the agreement … At this stage, I can say it will be signed quite soon,” the veteran Japanese diplomat told reporters at Vienna airport on his return from the Iranian capital.

VIENNA, May 22 (Reuters) – The U.N. nuclear watchdog chief said on Tuesday he expected to sign a deal with Iran soon to ease investigation into suspected work on atom bombs, potentially brightening prospects for big-power talks with Tehran to stop a drift towards conflict.

Speaking on the eve of the Baghdad meeting where six powers will test Iranian willingness to put transparent limits on its nuclear programme, Yukiya Amano said his wish for access to an Iranian military site where nuclear weapons-relevant tests may have occurred would be addressed as part of the accord.

But the powers will be wary of past failures to carry out extra inspection deals between the International Atomic Energy Agency and Iran, and Western patience is wearing thin.

European sanctions to block Iran’s oil exports are to take force in July and Israel has mooted military action. Iran, which denies any ambition to develop nuclear arms, has threatened reprisals and oil prices have risen on fears of a new Middle East war hitting a shaky world economy.

Amano himself acknowledged that “some differences” remained before the deal he hashed out during a rare visit to Tehran on Monday could be sealed, although chief Iranian negotiator Saeed Jalili had told him these would not prevent agreement.

“(A) decision was made to conclude and sign the agreement … I can say it will be signed quite soon,” Amano told reporters at Vienna airport after returning from Tehran.

The veteran Japanese diplomat described the outcome of his meetings in Iran as an “important development”.

VIENNA (Reuters) – The U.N. nuclear watchdog chief said on Tuesday he expected to sign a deal with Iran soon to ease investigation into suspected work on atom bombs, potentially brightening prospects for big-power talks with Tehran to stop a drift towards conflict.

Speaking on the eve of the Baghdad meeting where six powers will test Iranian willingness to put transparent limits on its nuclear program, Yukiya Amano said his wish for access to an Iranian military site where nuclear weapons-relevant tests may have occurred would be addressed as part of the accord.

But the powers will be wary of past failures to carry out extra inspection deals between the International Atomic Energy Agency and Iran, and Western patience is wearing thin.

European sanctions to block Iran’s oil exports are to take force in July and Israel has mooted military action. Iran, which denies any ambition to develop nuclear arms, has threatened reprisals and oil prices have risen on fears of a new Middle East war hitting a shaky world economy.

Amano himself acknowledged that “some differences” remained before the deal he hashed out during a rare visit to Tehran on Monday could be sealed, although chief Iranian negotiator Saeed Jalili had told him these would not prevent agreement.

“(A) decision was made to conclude and sign the agreement … I can say it will be signed quite soon,” Amano told reporters at Vienna airport after returning from Tehran.

The veteran Japanese diplomat described the outcome of his meetings in Iran as an “important development”.

VIENNA/DUBAI (Reuters) – The U.N. nuclear watchdog chief held rare talks in Tehran on Monday after voicing hope for a deal to investigate suspected atomic bomb research – a gesture Iran might make to try to get international sanctions relaxed and deflect threats of war.

International Atomic Energy Agency Director-General Yukiya Amano began discussions with the head of Iran’s nuclear energy organization, Fereydoun Abbasi-Davani, a few hours after his pre-dawn arrival, according to ISNA news agency.

Amano, who was on his first trip to Iran since taking office in 2009, a period marked by rising tension between the IAEA and Tehran, was also due to meet Iran’s chief nuclear negotiator, Saeed Jalili and Foreign Minister Ali Akbar Salehi on Monday. There was no word on the course of the talks by mid-afternoon.

“I really think this is the right time to reach agreement. Nothing is certain but I stay positive,” Amano, a veteran Japanese diplomat with long experience in nuclear proliferation and disarmament affairs, said before departure from Vienna airport. He added that “good progress” had already been made.

But while Amano scheduled Monday’s talks with Iran at such short notice that diplomats said a deal on improved IAEA access in Iran seemed near, few see Tehran going far enough to convince the West to roll back swiftly on punitive sanctions when its negotiators meet global power envoys in Baghdad on Wednesday.

“We are not going to do anything concrete in exchange for nice words,” a Western diplomat said of the Baghdad meeting, the outcome of a big power session with Iran in Istanbul last month that ended a diplomatic freeze of more than a year.

Two days after seeing Amano, Jalili will hold talks in the Iraqi capital with Catherine Ashton, the European Union foreign policy chief heading a six-power coalition comprised of the five U.N. Security Council permanent members – the United States, Britain, France, Germany, Russia and China – plus Germany.

VIENNA/DUBAI (Reuters) – The U.N. nuclear watchdog chief began talks in Tehran on Monday, Iranian media said, after voicing hope for a deal to investigate suspected atomic bomb research – a possible breakthrough that Iran may count on to ease sanctions and deflect threats of war.

International Atomic Energy Agency Director-General Yukiya Amano met the head of Iran’s nuclear energy organisation, Fereydoun Abbasi-Davani, hours after his pre-dawn arrival, according to ISNA news agency.

Amano, who was on his first trip to Iran since taking office in 2009, a period marked by rising tension between the IAEA and Tehran, was also due to meet Iran’s chief nuclear negotiator, Saeed Jalili and Foreign Minister Ali Akbar Salehi on Monday. He was greeted at Tehran airport by Iran’s IAEA ambassador.

“I really think this is the right time to reach agreement. Nothing is certain but I stay positive,” Amano, a veteran Japanese diplomat with long experience in nuclear proliferation and disarmament affairs, said before departure from Vienna airport. He added that “good progress” had already been made.

But while Amano scheduled Monday’s talks with Iran at such short notice that diplomats said agreement on improved IAEA access in Iran seemed near, few see Tehran convincing Western governments to ease back swiftly on punitive sanctions when its negotiators meet global power envoys in Baghdad on Wednesday.

Two days after seeing Amano, Jalili will hold talks in the Iraqi capital with Catherine Ashton, the European Union foreign policy chief heading a six-power coalition comprised of the five U.N. Security Council permanent members plus Germany.

By promising extended cooperation with U.N. inspectors, diplomats say Iran might aim for leverage going into the broader negotiations where the United States and its allies want Iran to curb works they say are a cover for developing nuclear weapons.

VIENNA/DUBAI (Reuters) – The U.N. nuclear watchdog chief began talks in Tehran on Monday, Iranian media said, after voicing hope for a deal to investigate suspected atomic bomb research – a possible breakthrough that Iran may count on to ease sanctions and deflect threats of war.

International Atomic Energy Agency Director-General Yukiya Amano met the head of Iran’s nuclear energy organization, Fereydoun Abbasi-Davani, hours after his pre-dawn arrival, according to ISNA news agency.

Amano, who was on his first trip to Iran since taking office in 2009, a period marked by rising tension between the IAEA and Tehran, was also due to meet Iran’s chief nuclear negotiator, Saeed Jalili and Foreign Minister Ali Akbar Salehi on Monday. He was greeted at Tehran airport by Iran’s IAEA ambassador.

“I really think this is the right time to reach agreement. Nothing is certain but I stay positive,” Amano, a veteran Japanese diplomat with long experience in nuclear proliferation and disarmament affairs, said before departure from Vienna airport. He added that “good progress” had already been made.

But while Amano scheduled Monday’s talks with Iran at such short notice that diplomats said agreement on improved IAEA access in Iran seemed near, few see Tehran convincing Western governments to ease back swiftly on punitive sanctions when its negotiators meet global power envoys in Baghdad on Wednesday.

Two days after seeing Amano, Jalili will hold talks in the Iraqi capital with Catherine Ashton, the European Union foreign policy chief heading a six-power coalition comprised of the five U.N. Security Council permanent members plus Germany.

By promising extended cooperation with U.N. inspectors, diplomats say Iran might aim for leverage going into the broader negotiations where the United States and its allies want Iran to curb works they say are a cover for developing nuclear weapons.