The UN’s International Atomic Energy Agency (IAEA) remains officially optimistic on talks with Iran:

TEHRAN (Reuters) – A U.N. nuclear agency official described cooperation with Iran as “good” ahead of talks on Monday about Tehran’s atomic work, after an Iranian warning that new U.S. sanctions could harm ties.

Iranian news agencies quoted Olli Heinonen, deputy director of the U.N. International Atomic Energy Agency (IAEA), as making the brief comment upon arrival in Tehran for a new round of negotiations with senior Iranian officials.

Iran and the Vienna-based nuclear watchdog agreed in August on a timetable to answer outstanding IAEA questions about the nuclear programme, prompting world powers to postpone a third round of U.N. sanctions on Tehran until at least November.

Full article here. Meanwhile, an unnamed Palestinian intelligence officials forecasts a U.S. attack, supported by some Arab nations with an Israeli deal on the West Bank, if there is no diplomatic progress:

A senior Palestinian intelligence official said that based on meetings with American diplomats he “understood” the US plans to target Iran’s suspected nuclear installations in two to three months if negotiations with Tehran don’t generate a major breakthrough.

The official, speaking to WND yesterday on condition of anonymity, said according to what he “understood,” the US will “pay” for Arab support for a US strike against Iran by creating a temporary Palestinian state in the Gaza Strip and most of the West Bank by next summer.

The official met last week with US Secretary of State Condoleezza Rice during her trip here earlier this month to prepare for a US-sponsored Israeli-Palestinian summit slated for next month in which Israel is expected to outline a future

Israeli leaders, including Prime Minister Ehud Olmert, in recent weeks hinted at willingness to give away sections of Jerusalem.

Full article here.

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