Tehran - Iran and the European Union on Monday reiterated their willingness to resume talks on the dispute over Iran's controversial nuclear programmes, ISNA news agency reported.

Iran's chief nuclear negotiator Saeid Jalili and EU foreign policy chief Javier Solana agreed in a phone contact to continue what Iran called "talks in a constructive atmosphere," ISNA reported.

According to Tehran media, the two had voiced the same willingness in a phone call last Monday.

Tehran- Iranian President Mahmoud Ahmadinejad is to finance a pilgrimage trip inside the country as a reward for selected local reporters, a deputy of the president said Saturday.

Mohammad-Jafar Mohammadzadeh, the president's deputy for communications and press affairs, told official news agency IRNA that on the occasion of "Reporter's Day" in Iran, the president will grant reporters a gift in the form of cash to travel to the religious city of Mashad.

Tehran - Iran's Supreme Leader Ayatollah Ali Khamenei said Saturday that Iran should not be afraid of political challenges, Western ballyhoos or dangers.

"Political challenges are natural and just reflect the forward trend of our Islamic system," the Ayatollah told foreign ministry officials, including Iranian diplomats abroad.

"We should therefore not be afraid of ballyhoos by the West and dangers, the foreign ministry should act with both courage and wisdom," said Khamenei, who according to the Iranian constitution has the final say on all state matters.

Tehran - Iran will compete against Israel at the Olympic Games for the first time since the 1979 Islamic revolution, Tehran media reported Saturday.

Iranian athletes have always rejected competing alongside Israelis as a sign of solidarity with the Palestinians and therefore faced disqualification on several occasions in international sport.

Iran does not recognize Israel as a sovereign state and has in the last three decades followed a hostile approach towards the Israeli government.

Brussels - The European Union on Friday brought into force the latest round of UN sanctions on Iran in the dispute over its nuclear programme.

An announcement published in the EU's official journal ordered the bloc's 27 member states not to enter into new commitments for grants, financial assistance and concessional loans to the Iranian government, but to continuously monitor the dealings of their own banks with Iranian institutions, especially Bank Saderat.

It also mandated member states to inspect cargoes carried by Iran Air Cargo and the Islamic Republic of Iran Shipping Line, as long as there are "reasonable grounds" for suspecting that they are carrying nuclear-related cargoes.

Tehran- Talks between Iran and the United Nations nuclear watchdog started in Tehran Thursday, state media reported.

The chief inspector of the International Atomic Energy Agency (IAEA), Oli Heinonen, and officials of the Iranian Atomic Organization, headed by Vice President Gholam-Reza Aqazadeh are to discuss the remaining ambiguities in Tehran's nuclear projects and the course of future cooperation.