The shock release of the British sailors shows Iran is willing to consider pragmatism over radicalism and steer clear of an all-out confrontation with the West, analysts said Thursday.

It remains to be seen what impact the release of the sailors will have on the much longer running crisis of Iran's nuclear standoff, but analysts said it creates hope that a deal can still be reached despite months of stalemate.

"It shows Iran's pragmatism," said analyst Mohammed Sadeq al-Husseini, who is close to former president Mohammad Khatami.

"It shows that Iran does not seek confrontation with the West and is also a wise step towards a peaceful solution for the most critical issue of the Middle East region, which is the Iranian nuclear issue.

"This is a correct, direct and frank signal. And it has a clear message for Britain and the United States and even for the Iranians that this is the solution, since the Middle East cannot bear another conflict," he said.

"With this action, Iran sent a signal that it is ready to sort out its issues through diplomatic means," said conservative analyst Amir Mohebian. "But at the same time if the path changes from the diplomatic path to the path of pressure Iran is ready to withstand pressure."

Iran's stance softens

Iran's arrest of the British sailors on accusations of trespassing on its waters on March 23 was seen by the West as further proof of the Islamic republic's radicalism and intransigence. But as the crisis went on, the statements from Tehran became milder with top security official Ali Larijani giving an interview to British television in which he said the crisis was eminently resolvable.

And while Tehran showed it is unafraid of saber-rattling by capturing the sailors in the first place, in the end they were released amid smiles after a relatively short two-week period in detention.

German Foreign Minister Frank-Walter Steinmeier on Wednesday described the release of the sailors as a "start... (which) will open the door to further cooperation."

The German presidency of the European Union welcomed the release of the British naval personnel, saying the EU had "repeatedly contacted the Iranian authorities to intercede strongly on behalf of the 15 British sailors and marines."

German EU presidency hopes for further dialogue

The German statement added that the EU hoped Iran would now work with the international community to find solutions in other areas. In particular it called on Iran to "seek a solution to the controversy over the Iranian nuclear program through dialogue and negotiation," in terms of an offer made by the foreign ministers of China, France, Germany, Russia, Britain and the US.

While President Mahomoud Ahmadinejad announced news of the release in a typical coup-de-theatre during a press conference, no such decision is taken without the prior approval of Iran's supreme leader Ayatollah Ali Khamenei.

Khamenei, an unswerving revolutionary who nonetheless eschews the provocative rhetoric of his president, has the last say on all foreign policy issues in the Islamic republic.

"The release of the sailors is the work of the leader. It was he who gave Larijani the lead in the talks and took the decision that needed to be taken," said a Western diplomat in Tehran, who asked not to be named.

Coming days after the United Nations agreed a second set of sanctions against Tehran over its nuclear program, the crisis came at a perilous time for relations between Tehran and the West.

Western powers fear Iran is seeking nuclear weapons -- a charge vehemently denied by Tehran -- and the United States has never ruled out the option of military action to bring Tehran to heel.

Iran has already shown a degree of pragmatism in some aspects of the nuclear standoff -- most noticeably by the way it failed to carry out threats to sever cooperation with the UN nuclear watchdog after the first sanctions resolution.

However Iran's nuclear chief Ali Larijani has told the European Union there was no chance Tehran would suspend its programme of uranium enrichment, state television reported on Thursday.

He made the comments in a telephone conversation on Wednesday
with the EU's top diplomat, Javier Solana. "The Islamic Republic of Iran is ready to negotiate only on non-diversion (of its nuclear programme for military purposes) and not on its nuclear rights," Larijani was quoted as saying by an official of the supreme council for national security, which he heads.

"Iran will not accept any preconditions or suspension for a
time. Nor can suspending enrichment be a precondition or the result
of negotiations" with the five permanent UN Security Council members plus Germany, he was quoted as saying.

Concilliation gives hope in nuclear stand-off

Despite Larijani's defiant comments, Mohebian said Wednesday's dramatic events showed that the authorities have no qualms of acting in a conciliatory fashion when the situation requires -- something that could have an impact on the nuclear crisis.

"The Iranian regime is structured in a way that there is a substantial room for maneuver in decision-making. Although the situation was grave it is ready to make quick decisions in order to cut down the tension," said Mohebian.

"This diplomacy can be repeated elsewhere, according to the political situation" said Mohebian. "Iran is seeking to change and correct its image worldwide."