The United States on Friday removed sanctions on an Iraqi bank that was blacklisted last year for helping Iran skirt international financial controls over its nuclear activities. The US Treasury said it removed the sanctions placed last July on Baghdad-based Elaf Islamic Bank after Elaf acted to freeze assets of the Export Development Bank of Iran and cut its exposure to Iran's financial system. The sanctions, part of the US effort to isolate Iran from the global economy over its alleged nuclear weapons program, had banned Elaf from any access to the US financial system.

By Fredrik Dahl and Parisa Hafezi VIENNA/ISTANBUL (Reuters) - Iran faces international pressure over its nuclear program in two separate meetings on Wednesday, but no breakthrough is expected with the Islamic state focused on next month's presidential election. In Vienna, the U.N. nuclear agency will once again urge Iran to stop stonewalling its inquiry into suspected atomic bomb research by Tehran, which denies any intent to make such arms.

By Yeganeh Torbati DUBAI (Reuters) - Some 100 legislators are demanding a ban on two top independent candidates including ex-president Akbar Hashemi Rafsanjani from Iran's June presidential election in what may be a further move to thwart any brewing challenge to the clerical supreme leader.

Nuclear talks between Iran and the UN atomic agency failed yet again Wednesday, as a top US diplomat said she expected the IAEA to report Tehran to the UN Security Council soon. The IAEA announcement came just as EU foreign policy chief was due to meet Iran's chief nuclear negotiator in Istanbul for the first time since failed six-party talks in April. "We could not finalise the structured approach document that has been under negotiation for a year and a half," the International Atomic Energy Agency's chief inspector told reporters.