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VIENNA, April 17 (Reuters) - Iran is complying with the terms of last year's interim nuclear agreement with six world powers and is continuing to reduce its most sensitive uranium stockpile, a monthly update from the U.N. atomic agency obtained by Reuters showed on Thursday.
But the report by the International Atomic Energy Agency (IAEA), which has a pivotal role in verifying that Iran is living up to its part of the deal, also indicated a delay in the commissioning of a nuclear conversion plant that Tehran needs to fulfil all parts of the six-month agreement by the time it ends on July 20.
Under the landmark accord that took effect on Jan. 20, Iran curbed some parts of its nuclear programme in exchange for a limited easing of sanctions that have battered the oil producer's economy.
The IAEA update showed that Iran had - as stipulated by the Nov. 24 agreement with the United States, France, Germany, Britain, China and Russia - diluted half of its higher-grade enriched uranium stockpile to a less proliferation-sensitive fissile concentration.
The accord was designed to buy time for talks on a permanent settlement of the decade-old dispute over nuclear activities that Iran says are peaceful but the West fears may be aimed at developing an atomic bomb capability. Those talks got under way in February and the next meeting is due on May 13 in Vienna.
(Reporting by Fredrik Dahl; Editing by Louise Ireland and Susan Fenton)