It still looks like an oasis in the desert, but Baghdad’s smart set does not drive out to play beside the pristine lake at Habbaniyah any more.

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.