Iran nuclear talks resume for second day

Envoys from Iran and six world powers have resumed talks over Tehran's nuclear programme after issuing rival proposals during the opening day of negotiations in Baghdad.

The meetings spilled into a second day in apparent efforts to avoid an impasse that could derail the most promising nuclear dialogue with Iran in years.

On the table is an incentive package by the six-nation group - the US, UK, China, Russia, France and Germany - that seeks to halt the most sensitive part of Iran's nuclear fuel production.

Tehran put forward a counter-proposal after saying it wants the US and Europe to ease sanctions.

The West and allies fear Iran's 20% uranium enrichment could be quickly turned into warhead-grade material.

The high-enriched uranium is far above the level needed for energy-producing reactors, but is used in medical research. Iran claims its nuclear programme is only for electricity and medical applications.