Iran and the main western powers on Tuesday stepped back from an immediate confrontation over Tehran’s nuclear programme as George W. Bush, US president, welcomed a suggestion by Iran’s new conservative president that negotiations should continue, even as work proceeded on reactivating a mothballed uranium facility.

Meanwhile, in Vienna an emergency board meeting of the International Atomic Energy Agency (IAEA) – called on Tuesday by the EU3 of France, Germany and the UK – heard calls for “maximum restraint” by Mohamed ElBaradei, the head of the United Nations nuclear watchdog.