Implementation of interim Iran nuclear deal begins

In this Sept. 2007 file picture an anti-aircraft gun position is seen at Iran's nuclear enrichment facility in Natanz, Iran.AP/File

The United Nations nuclear watchdog reported Monday that Iran had halted its most sensitive uranium enrichment work as part of a deal struck with six world powers last November.

Iranian state TV reported shortly before noon local time that Iran had halted its 20 percent uranium enrichment, which is just steps away from bomb-making capability, by cutting the link feeding cascades enriching uranium at its facility in Natanz. The report also said that inspectors from the International Atomic Energy Agency (IAEA) were present to observe the procedure and were schedule to monitor the suspension at Fordo, another uranium enrichment site in central Iran.

Under the agreement reached by Iran, the U.S., Great Britain, France, Germany, Russia and China in Geneva on Nov. 24, confirmation from the IAEA that Iran has curbed its enrichment would trigger the partial suspension of U.S. and EU sanctions. That in turn would allow Iran to resume some key exports, including petrochemicals. Iran would also be able to resume trading in gold, other precious metals, and automotive parts.

In exchange, Iran has agreed to halt enrichment of uranium above 5 percent purity and 'neutralize' its 20 percent enriched uranium.

Iran is also scheduled to receive the first of six installment payments of unfrozen overseas funds on or around Feb. 1. In total, the payments will amount to $4.2 billion, with the last of the funds due to be transferred in July.

Since the deal was announced late last year, the Obama administration has fought hard against the prospect of additional sanctions legislation passing the Senate. Last Sunday, President Obama threatened to veto any such bill, which its proponents claim would keep the pressure on Iran to adhere to the terms of the deal.

The U.S. and its Western allies have long feared that Iran's nuclear program would be used to develop weapons. Iran has repeatedly insisted that it has no such intention and claims its program is for peaceful purposes, like power generation and medical research.