Iran sees "common ground" with big powers' atom offer

TEHRAN (Reuters) - Iran said on Monday it was encouraged by common points between its and world powers' separate proposals aimed at defusing a nuclear dispute, but again dismissed any suggestion of suspending uranium enrichment.

Foreign Ministry spokesman Mohammad Ali Hosseini said Tehran was studying an offer of economic and other incentives by six major powers, which are trying to convince Iran to halt activity the West suspects is aimed at making bombs.

But he did not say when Iran would respond to the incentives proposal by the United States, Russia, China, Britain, Germany and France, which was handed to Tehran by European Union foreign policy chief Javier Solana on June 14.

The Islamic Republic has put forward its own package of proposals aimed at resolving the row, but diplomats say it ignores global concern about its enrichment program, which can have both military and civilian uses.

"We believe this common ground is encouraging," Hosseini told a news conference without elaborating. "We say that this common ground can help with the start of negotiations."

"Time is ripe for these talks and we should not lose this opportunity," he said in comments translated by Iran's Press TV satellite station. "We feel that compared to years past there is a more pronounced serious will on the side of the other party."

The incentives package offered by the sextet is an updated version of one rejected by Iran in 2006.

"APPROPRIATE TIME"

Hosseini said Iran would respond to the incentives offer, which includes help in developing a civilian nuclear program and trade benefits, at an "appropriate time" and that it expected the six powers to study Tehran's proposals as well.

The long-running dispute over Iran's nuclear work, which Tehran says is solely aimed at the generation of electricity, has sparked fears of military confrontation and helped push up oil prices to record highs.

U.S. light crude for August delivery rose $1.28 to $136.65 a barrel at 0812 GMT on Monday, partly on concerns over a report that Israel's air force had rehearsed a possible bombing run against Iran's nuclear facilities.

Diplomats said on Friday the major powers had offered Iran preliminary talks on its nuclear program, on condition it limit enrichment to current levels for six weeks in exchange for a freeze on moves towards harsher sanctions.

Iranian officials have repeatedly rejected stopping enriching uranium as a precondition for negotiations.

Their refusal to do so has drawn three rounds of United Nations sanctions since 2006 and Western powers have warned of more punitive measures if Iran rejects the latest offer.

"Suspension of enrichment has no logical reason behind it," Hosseini said. "We believe that no proposals should be made that lead to the Iranian nation being denied its rights."

The United States says it is focusing on diplomatic pressure to thwart Tehran's nuclear ambitions but has not ruled out military action as a last resort.