Tehran waiting for US policy change

In a turnaround in US diplomacy, Obama has said he wants better ties with the Islamic Republic and offered a new start in relations after decades of mistrust. Iran has so far given a cautious response to Obama's overtures.

Speaking in Kazakhstan during an official visit, Ahmadinejad said he welcomed "change and reform" but made it clear Tehran expects Washington to make the next move.

"We are waiting for this change," he said. "We hope that [Obama's] views are based on the necessity for reform and change of policy. We hope he can achieve that."

The United States cut off ties with Tehran during the 1979-1981 crisis in which militant Iranian students held dozens of US diplomats hostage at the US Embassy for 444 days.

It has accused Iran of trying to develop nuclear weapons and suspects Iran uses its civilian nuclear program as a cover. Tehran says it is developing only peaceful nuclear energy.

Iran's top authority, Supreme Leader Ayatollah Ali Khamenei, has said Obama's offer of better ties is a "slogan," but pledged Tehran would respond to any concrete policy shift.

While reaching out to Iran, Obama's administration has also warned of tougher sanctions if Iran continues to defy UN demands to halt its sensitive nuclear work.