The International Atomic Energy Agency has concluded the Iranian government appears to have overcome most of its technological difficulties and is now enriching larger quantities of uranium than before. Inspectors say Iran’s main nuclear facility has 1,300 centrifuges producing uranium that could be used for nuclear reactors. Iran remains far from being able to produce weapons-grade fuel. The news comes as Iranian President Mahmoud Ahmadinejad has threatened severe retaliation in the event of a U.S. attack. But he also confirmed reports Iranian officials will meet with U.S. counterparts for talks on Iraq in Baghdad.

Iranian President Mahmoud Ahmadinejad: “The Americans, in order to solve the security issues in Iraq, have requested to talk to Iran. We, in order to support the Iraqi people, declared that we are ready and prepared. Even until now, the date of this dialogue has not been confirmed. Both parties confirmed that the talks will take place in the Iraqi capital, Baghdad, with the presence of the Iraqi government.”