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WORLD> Middle East
Iran sees better mood in nuclear talks
(Agencies)
Updated: 2008-07-03 09:35

Bush was not alone in criticizing Ahmadinejad, who often berates Washington in fiery speeches. On Tuesday, a senior advisor to Iran's top authority, Supreme Leader Ayatollah Ali Khamenei, said "provocative" speeches could damage the country's nuclear cause -- a veiled reference to Ahmadinejad.

Despite upbeat comments by Mottaki and indications of an opening for talks, the State Department expressed skepticism.

"There needs to be some actual follow-through," State Department spokesman Sean McCormack said. "Whether their public statements from the foreign minister are positive or not is really not terribly important at this point."

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In Brussels, Solana said he would wait for Tehran's formal response to the incentives offer before commenting on statements from Iranian officials.

Leaked reports of a major Israeli military exercise over the Mediterranean on June 2 generated speculation that Israel might be preparing to strike Iranian nuclear facilities or press the United States to take military action.

One concern for oil markets is that Iran, the world's fourth-largest oil producer, could try to close the Strait of Hormuz in retaliation for a military strike. About 40 percent of seaborne oil trade passes through the strait, according to the US government.

The top US naval commander in the Gulf played down that concern and said he would act if Iran made any such move.

"Iran will not attempt to close the Strait of Hormuz and we will not allow them to close the Strait of Hormuz," Vice-Admiral Kevin Cosgriff, the commander of the US Navy's Fifth Fleet, told a conference in Abu Dhabi.

At the Pentagon, Mullen said Iran might be able to create hazards in the strait but not maintain them.

There have been several incidents in the Gulf this year in which US ships have come close to skirmishing with approaching boats in the busy waterway. US officials have blamed Iran, which has denied responsibility.

Oil rose above $142 a barrel Wednesday, below the record $143.67 hit on Monday.

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