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Photograph: EPA

Iran is meeting key obligations to curb its nuclear programme under the deal Tehran struck with six world powers, according to a first report by the International Atomic Energy Agency since the deal went into effect in January.

The deal that was pushed by Iranian President Hassan Rowhani and his moderate faction is expected to influence the outcome of Friday's parliamentary election in Iran, as it has raised hopes for economic recovery and for improved relations with the West.

In an report issued Friday, the IAEA said that Iran's stockpile of enriched uranium remained below the agreed limit of 300 kilograms, and that the number of centrifuges for uranium enrichment was also below the agreed number.

In addition, the IAEA confirmed that no additional construction work has been carried out on the Arak reactor, which could have produced plutonium as a side product if it had become operational.

The nuclear deal that Iran signed with the United States, Britain, France, Germany, Russia and China last July is designed to prevent Iran from acquiring uranium or plutonium for a nuclear weapon.

"The process is working," a diplomatic source said.

After the deal came into effect on January 16, Iran temporarily stocked slightly more heavy water than defined in its deal with the world powers, but the excess material has since been shipped out of the country, the report showed.

Heavy water is used in the cores of certain types of reactors.

In addition, the IAEA said Iran stopped building elements of advanced types of centrifuges only on Monday, without stating whether the work that was carried out was covered by the agreement.

On January 16, the US and the European Union lifted their embargoes that had severely hurt key economic sectors in Iran, including the oil industry and banks.

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