US President Barack Obama has offered "a new beginning" of engagement with Tehran in an unprecedented direct video message to the Iranian people.
"My administration is now committed to diplomacy that addresses the full range of issues before us," Mr Obama said.
An advisor to Iran's president welcomed Mr Obama's message but said Washington had to fundamentally change policy.
Relations between Iran and the US have been strained over Tehran's controversial nuclear activities.
The US fears Iran's uranium enrichment programme is a cover to build atomic weapons, a charge Iranian officials deny.
Mr Obama, like his predecessor, wants Iran to abandon its uranium enrichment programme, but is trying to build up diplomatic capital before confronting the issue, says the BBC's diplomatic correspondent Jonathan Marcus.
Warning
EU foreign policy chief Javier Solana described Mr Obama's appeal as "very constructive" and urged Teheran to pay close attention to it.
Paul Reynolds, World affairs correspondent President Barack Obama's video message is an imaginative start to his attempt to improve relations - but huge obstacles remain. In diplomacy such efforts at overcoming major differences sometimes end simply in defining those differences more sharply. These issues were not directly mentioned by Mr Obama but this is what he is referring to: • Iran to give up uranium enrichment and accept international offers to provide fuel for nuclear power Iran will want the following: • Acceptance of its right to enrich uranium |
In it, President Obama said he wanted "to speak directly to the people and leaders of the Islamic Republic of Iran".
He said his administration was committed "to pursuing constructive ties among the United States, Iran and the international community".
"With the coming of a new season, we're reminded of this precious humanity that we all share. And we can once again call upon this spirit as we seek the promise of a new beginning," the message said.
But Mr Obama warned: "This process will not be advanced by threats. We seek instead engagement that is honest and grounded in mutual respect."
"The United States wants the Islamic Republic of Iran to take its rightful place in the community of nations. You have that right - but it comes with real responsibilities."
Reacting to the message, Ali Akbar Javanfekr, a senior advisor to Iranian President Mahmoud Ahmadinejad, said the US had to recognise its past mistakes if it wanted to engage Iran.
"By fundamentally changing its behaviour America can offer us a friendly hand," he told Reuters news agency.
"Unlimited sanctions which still continue and have been renewed by the United States are wrong and need to be reviewed," he said.
'Axis of evil'
Mr Obama's message was distributed to news outlets in Iran with subtitles in Farsi, and posted on the White House's official website.
The message is a dramatic departure from the policies of the George W Bush's administration, which described Iran as part of the "axis of evil", the BBC's Jonathan Beale in Washington says.
Earlier this year, President Obama said he was looking for "openings that can be created where we can start sitting across the table face-to-face" with Iran.
It's certainly a positive action and wouldn't result in a situation worse than what is today.
Mr Obama has talked of engagement with Iran but has not made clear how that might take place.
Shortly after coming to office in January, he said "if countries like Iran are willing to unclench their fists, they will find an extended hand from us".
But earlier this month he extended sanctions against Iran for a year, saying it continues to pose a threat to US national security.
In another possible move towards engagement, the state department is said to be considering an overture in the form of a letter to Iran's Supreme Leader Ayatollah Khamenei before the Iranian elections this summer.
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