ElBaradei says deal on Iran atom crisis still feasible

VIENNA, Mar 6 (Reuters) The International Atomic Energy Agency chief said today he hoped a deal to defuse a standoff over Iran's nuclear aims could be reached soon, as the IAEA board met in a possible prelude to UN Security Council action.

Mohamed ElBaradei cited a surge of diplomacy involving Russia and EU powers in which Iran has offered not to pursue industrial-scale uranium enrichment for up to two years. But its insistence on doing sensitive research is a key sticking point.

'I am still very much hopeful that in the next week or so an agreement could be reached,'' ElBaradei said, while acknowledging that Russia's proposal to enrich uranium for Iran had snaagged on Tehran's determination to purify nuclear fuel itself.

Javad Vaeedi, deputy secretary of Iran's national security council, highlighted that obstacle when he told Reuters that enrichment ''research and development'' in Iran was irreversible.

Western leaders suspect Iran is seeking atomic weapons under cover of a civilian programme for nuclear-generated electricity.

Iran denies this but its evasions of IAEA probes and public calls for Israel's destruction have stoked Western suspicions.

ElBaradei believes UN intervention, with the option of sanctions against Iran, could close avenues to a diplomatic deal and bolster Iranian hardliners, IAEA sources say. Tehran has warned it could bolt a nuclear safeguards treaty if pushed.

''Confrontation (between the West and Iran) could be counterproductive and would not provide us with a durable solution,'' ElBaradei, calling for verbal restraint on all sides.

''There is universal recognition that the Iran issue has serious implications for international security. Everyone understands that escalation is not going to help a situation that is highly, highly volatile in the Middle East,'' he said.

The IAEA's 35-member board reported Iran to the Security council a month ago. It urged Iran to heed resolutions to halt uranium enrichment work, which can potentially yield bomb-grade nuclear fuel, and stop stonewalling IAEA inquiries.

This week the IAEA board will consider ElBaradei's latest report on Iran's nuclear project, which will be forwarded to the Security Council as mandated by a February 4 board vote.

Whether the council goes beyond a debate on Iran hinges on the fate of Moscow's proposal to supply Iran with nuclear fuel if it stops trying to master enrichment technology itself.

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