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Nuclear talks between Iran and six world powers have entered a new stage, with the two sides discussing drafting a final deal. The latest round of negotiations¹ began Wednesday in Vienna, a little more than two months before the July 20 target for an agreement, and there has been cautious optimism over the talks so far.

EU foreign policy chief Catherine Ashton (L), Iranian foreign minister Mohammad Javad Zarif (C) and Iranian Deputy Foreign Minister Abbas Araqchi (R) attend a session of the 4th round discussion on Iran's nuclear program in Vienna, Austria, May 14, 2014.  (Xinhua/Qian Yi)

"The atmosphere is always very cordial between the two sides, and very business-like. It was an hour-long session this morning, which was longer than the initial plenary session as it is in these circumstances, so it was a good, useful initial discussion. No one should expect a dramatic announcement, I think, this week, because it's a phase of intensive negotiations," EU Foreign Affairs spokesman Michael Mann said.

The six powers hope to reduce Iran's nuclear weapons-making potential by negotiating substantial cuts in its atomic program. Tehran says it is not pursuing nuclear arms but is ready for concessions² in exchange for an end to all sanctions on its economy. Despite some progress over months of talks, diplomats³ say substantial differences remain. The talks follow last November's first-step deal, in which Tehran agreed to temporarily stop expanding its nuclear activities in return for some sanctions relief.