Iran 'reply' on nuclear fuel deal

Iran has delivered a response on a UN-backed proposal seen as crucial to easing diplomatic tensions over its nuclear programme, Iranian media say, BBC reported.

Under the plan, most of Iran's enriched uranium would be sent abroad to be turned into fuel rods for research use.

Iran's president said earlier his country was ready to co-operate with the proposal.

Iran says it is enriching uranium for fuel, but the US and its allies have accused it of seeking nuclear weapons.

A report on Al-Alam TV on Thursday said Iran had given its response on the International Atomic Energy Agency (IAEA) plan, but gave no details.

Iran's Isna news agency quoted Iran's ambassador to the IAEA, Ali Asghar Soltanieh, as saying only that Iranian "economic and technical concerns regarding the supply of fuel for the research reactor [in Tehran] should be addressed."

Earlier, Iranian President Mahmoud Ahmadinejad described the IAEA proposal as a move from "confrontation to co-operation" by western powers.

"We welcome fuel exchange, nuclear cooperation, building of power plants and reactors and we are ready to co-operate," Mr Ahmadinejad said in a televised speech in the city of Mashhad.

The IAEA has proposed exporting most of Iran's enriched uranium to Russia and France, where it would be converted into fuel before being returned to Iran.

The plan was agreed by the US, Russia and France, after talks in Vienna, but Iran missed a deadline to respond on Friday.