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GENEVA--Iran and the United States met in Geneva for bilateral talks on Thursday as international diplomacy intensifies to end a decade-old dispute over Tehran's atomic activities by a new deadline in late November.

The office of European Union foreign policy chief Catherine Ashton confirmed Iran and six world powers would hold their first negotiating round since they failed to meet a July 20 target date for an agreement in New York on Sept. 18. The deadline was extended until Nov. 24 after six months of talks because wide gaps persisted over the future scope of Iran's uranium enrichment programme, which can have both civilian and military applications.

The six powers - the United States, Russia, China, France, Germany and Britain - aim to persuade Iran to scale back its nuclear programme in exchange for phasing out sanctions that have severely hurt its oil-dependent economy. The election last year of President Hassan Rouhani, widely seen as a pragmatist, raised hopes of a settlement of the stand-off after years of tension and fears of a new Middle East war, and an interim accord was reached between Iran and the six powers in Geneva late last year.

But Western diplomats say the sides remain far apart on what a final deal should look like - especially on the issue of how many enrichment centrifuges Iran can operate - and that a successful outcome in the negotiations is far from guaranteed. Western countries suspect Iran's programme is aimed at seeking the capability to build a nuclear bomb. Tehran says it is a peaceful project to generate electricity.

Thursday's meeting in Geneva between senior Iranian and U.S. officials was the second time they held talks in the Swiss city in the past month. State news agency IRNA and a U.S. official confirmed the discussions were underway.

"I believe we are still not in a position to judge whether or not we can reach a deal before the deadline of Nov. 24, but we are trying our best and are hopeful and optimistic," Iranian Deputy Foreign Minister Abbas Araqchi told France 24 on Wednesday after talks with French officials in Paris this week.

"The good news is that both sides are serious enough to come to a deal by the deadline," Araqchi said. One of Iran's chief negotiators, he took part in the Geneva talks on Thursday.

The United States last week penalised a number of Iranian and other foreign companies, banks and airlines for violating sanctions against Tehran, saying it was sending a signal that there should be no evasion of sanctions while talks continue. Rouhani said on Saturday the sanctions were against the spirit of negotiations, but added he was not pessimistic about the viability of the talks.