Iran is ready for talks with the United States based on mutual respect but wants real US policy change, the president said yesterday, in his most measured remarks to America since President Barack Obama took office.

Obama said in his first White House news conference on Monday that he saw the possibility of diplomatic openings with Iran in the months ahead, marking a break with his predecessor George W. Bush, who wanted to isolate not engage Iran.

The United States and its Western allies accuse Iran of seeking nuclear weapons, a charge Teheran denies. Despite a new approach, Obama's administration has also warned Iran of tougher sanctions if it does not halt its disputed nuclear work.