Iran responds to big powers' nuclear offer

BUYING TIME?

The dispute over Iran's nuclear activities has sparked fears of a military confrontation and contributed to oil prices rising to record highs.

Analysts and diplomats say they detect a softer tone from Iran towards the nuclear incentives offer, but that this may be a bid to buy time rather than a shift to accept world powers' key demand of a halt to uranium enrichment.

They say it is also uncertain whether Iran might accept a "freeze-for-freeze" idea to get preparatory talks going.

Such a step would involve Tehran freezing expansion of nuclear enrichment in return for world powers halting moves to add to three rounds of U.N. sanctions already imposed.

Enriched uranium can be used as fuel for power plants but also, if refined much more, provide material for nuclear bombs.

The incentives package proposed by the six powers is a revised version of an offer spurned by Iran in 2006, which included civilian nuclear cooperation as well as wider trade in aircraft, energy, high technology and agriculture.

Iran, the world's fourth-largest oil exporter, says its nuclear programme is solely aimed at generating electricity so that it can sell more of its oil and gas.

An Iranian official, speaking on condition of anonymity to Reuters last month, said time was on Iran's side.