Iran leader suggests U.S. ties possible in future

By Zahra Hosseinian

TEHRAN (Reuters) - Iran's supreme leader suggested on Thursday that ties might one day be possible with the United States, the Islamic state's arch foe for almost three decades, although he said it would harm Iran to restore relations now.

"Not having relations with America is one of our main policies but we have never said this relationship should be cut forever," Ayatollah Ali Khamenei said in the central province of Yazd, state television reported.

"Certainly, the day when having relations with America is useful for the nation I will be the first one to approve this relationship."

The United States severed ties shortly after Iran's 1979 Islamic Revolution and the seizure of the U.S. embassy in Tehran. They are at odds over Iran's atomic ambitions and also disagree over who is to blame for the violence in Iraq.

Iranian leaders have often said they would not establish ties with the United States unless Washington, which is leading efforts to isolate Tehran over its nuclear work, changes its behavior towards the Islamic Republic.

U.S. Secretary of State Condoleezza Rice said last month Washington was open to better relations with Iran if it halted its nuclear work, something Tehran has repeatedly refused to do.

The West suspects Iran wants to master nuclear technology so it can build atomic bombs. Iran, the world's fourth-largest crude producer, says its program is aimed at generating electricity to enable it to sell more oil and gas.

NO NUCLEAR SUSPENSION