IAEA Team Heads to Iran for Talks on Nuclear Program

The outcome, after an inconclusive first round of discussions last month, could determine whether the international standoff over Iran's uranium enrichment program escalates further or offers scope to reduce tensions.

Iran denies Western allegations that it is seeking to develop nuclear weapons, but its refusal to curb uranium enrichment work, which can have both military and civilian purposes, and stonewalling of the IAEA's investigation have raised concerns.

Tensions have soared in recent months, with the United States and European Union adopting oil sanctions and Tehran threatening retaliation by closing the Strait of Hormuz, the main Gulf oil shipping lane.

But the United States and European Union expressed cautious optimism on Friday over prospects that Iran may be willing to engage major powers in new talks. They stressed that any resumed negotiations must be sustained and focus on the nuclear issue.

U.S. Secretary of State Hillary Clinton and European Union foreign policy chief Catherine Ashton said Iran's letter to Ashton last week might mark a step forward.

Iran's letter to Ashton - who handles contact with Iran on behalf of the United States, Britain, France, Russia, China and Germany - proposed resuming the talks and said Tehran would have "new initiatives" to bring to the table.

"In these negotiations, we are looking for a way out of Iran's current nuclear issue so that both sides win," Iranian state television quoted Foreign Minister Ali Akbar Salehi as saying on Sunday.

"TALKS ABOUT TALKS"

The IAEA wants Iran to explain intelligence findings - detailed in an IAEA report in November - about research and development pointing to a nuclear weapons agenda, and grant access to sites, documents and people relevant to the inquiry.