Bush stresses diplomacy on Iran

President George W. Bush said yesterday there was still time for diplomacy to halt Iran's nuclear ambitions, but a Russian deal to provide the Islamic republic with nuclear fuel in defiance of the US was likely to rekindle fears of confrontation. Iran...

President George W. Bush said yesterday there was still time for diplomacy to halt Iran's nuclear ambitions, but a Russian deal to provide the Islamic republic with nuclear fuel in defiance of the US was likely to rekindle fears of confrontation.

Iran accused its long-time foe Washington of using a brief worldwide scare over an explosion on Wednesday near its only nuclear reactor to unleash "psychological warfare".

The explosion - first reported by Iranian television as a possible airplane missile strike but later said to have been an errant construction site blast - rattled an anxious world.

Washington has accused Iran of trying to develop nuclear weapons, and it is seeking to halt any potential weapons-related work.

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