Iran nuclear talks with U.S. and allies eases tension

By Louis Charbonneau and Parisa Hafezi

GENEVA (Reuters) - Talks between Iran and six major powers over Tehran's nuclear program on Thursday opened the door to improved relations as Iran agreed to allow U.N. inspectors into a newly disclosed uranium enrichment plant.

Both the United States and Iran described the talks between Tehran and the six powers -- Britain, France, Germany, Russia and China as well as the United States -- as productive and agreed the contacts would be resumed by the end of the month.

In Washington, President Barack Obama described the meeting in Geneva as a "constructive beginning" but insisted that Iran must demonstrate to the United States and its European allies that it was not seeking nuclear weapons. Iran insists its nuclear program is designed only for electrical power generation,

"The Iranian government heard a clear and unified message from the international community. Iran must demonstrate through concrete steps that it will live up to its responsibilities with respect to its nuclear program," Obama said.

"We've made it clear that we will do our part to engage the Iranian government on the basis of mutual interest and mutual respect but our patience is not unlimited."

The conciliatory tone of the discussions, which included the highest-level direct talks in three decades between Iranian and U.S. officials, appeared to ease some of the tension between Tehran and the United States and its European allies, which have been threatening Iran with stringent new sanctions.

Oil prices rose in afternoon activity due to the tensions, before easing in late trade after Obama spoke. Concerns the standoff could lead to a supply disruption have supported prices at various times in recent years.

"We began good talks in today's negotiations," Tehran's chief nuclear negotiator, Saeed Jalili, told Iranian media. "We have common viewpoints with which we will deal in the continuing talks."

In what appeared to be a significant gesture, a senior U.S. official said Iran had agreed "in principle" to allow its uranium to be sent to Russia for further processing. It would then be returned to Iran in a form suitable for use in a reactor but not of a purity necessary for a bomb.

Tehran also said it would throw open a uranium enrichment plant near the holy city of Qom to U.N. inspectors in the next couple of weeks. The underground nuclear fuel facility had been kept secret until Iran disclosed its existence last week, setting off an international furor.

U.N. NUCLEAR INSPECTION

Underlining the determination of the big powers to move ahead with a rapid U.N. inspection of the plant, Obama insisted Iran must meet its pledge.

"It must grant unfettered access to IAEA inspectors within two weeks," he said referring to the U.N. nuclear watchdog.

The International Atomic Energy Agency head, Mohamed ElBaradei, will visit Iran this weekend, a senior U.S. official said.

Iranian nuclear chief Ali Akbar Salehi said the gates of the Qom site were open in principle but protocols had to be observed. "Inspections will take place soon ... it is not far away," he said.