Iran continues to comply with nuclear deal after U.S. withdrawal, UN says

Iran has stayed within the maincurbs on its nuclear activity imposed by its deal with majorpowers despite the U.S. pullout from the pact, but could bequicker to provide extra access to inspectors, the UNatomicwatchdog indicated on Thursday.

In its first such report since U.S. President Donald Trumpannounced Washington's withdrawal on May 8, the InternationalAtomic Energy Agency said Iran had complied with limits on thelevel to which it can enrich uranium, its stock of enricheduranium and other items.

But the IAEA seemed to rebuke Iran for dragging its feet onso-called "complementary access" inspections under the agency's additional protocol, which Iran is implementing under the deal. Such inspections are often carried out at short notice.

"The agency ... has conducted complementary accesses underthe additional protocol to all the sites and locations in Iranwhich it needed to visit," the IAEA said in a confidentialreport that was sent to member states and seen by Reuters.

"Timely and proactive co-operation by Iran in providing suchaccess would facilitate implementation of the additional protocol and enhance confidence," it said.

The report came with France, Britain and Germany scramblingto salvage the deal's core bargain of sanctions relief in exchange for restrictions on nuclear fuel production. Trump isreimposing U.S. sanctions against Tehran, threatening to scupperthe deal and prompt Iranian retaliation.

The IAEA has repeatedly defended the deal, saying it created"the world's most robust verification regime."

A 'comforting' report

Speaking at a news conference with Russian leader VladimirPutin in Saint Petersburg, French President Emmanuel Macron saidthe report went in the "right direction and was comforting."

Diplomats who follow the agency said an inspection lastmonth went down to the wire, but a senior diplomat also familiarwith the IAEA's work said on Thursday the report was not takingIran to task.

"There was no problem. It's just an encouragement. The IAEAwants to make sure that there won't be any problem," he said,adding that there had been no change in Iranian behaviour eitherover the first quarter of 2018 or since Trump's announcement.

Trump sees various "flaws" in the deal, including that manyof its restrictions lapse over time and that it does not addressIran's ballistic missile program or its role in regionalconflicts like the wars in Syria and Yemen.

Some Western companies like French oil giant Total havealready said they may have to quit Iran because of the U.S. move. Senior officials from the other countries that signed thedeal France, Britain, Germany, Russia, China and Iran aremeeting in Vienna on Friday to discuss next steps.

At a meeting with the European Union's foreign policy chiefin Brussels last week, the French, British and German foreignministers pledged to preserve the deal by trying to keep Iran'soil and investment flowing, but acknowledged they would struggleto provide the guarantees Tehran seeks.

Iran's supreme leader set out a series of conditions onWednesday for Iran to stay in the deal, including that Europeanbanks should safeguard trade with the Islamic Republic.