Iran and the UN nuclear watchdog have reached agreement on how to conduct negotiations over Tehran’s contentious nuclear programme and will continue talks in search for a final settlement, both sides said.

The United States has taken another step in restoring normal diplomatic relations with Libya, as President George W. Bush nominated a US ambassador to the once-outcast nation.

Syria has signalled to the UN’s Middle East envoy a willingness to change its relationship with Iran, Hizbollah and Hamas if progress were made towards a peace deal with Israel.