Bloomberg: Crude oil prices fall as Iran submits 'constructive and creative' atom response to Solana

Crude oil fell from near a record as Iran said it gave a ``constructive'' response to incentives intended to persuade the nation to stop uranium enrichment.

A compromise may allay concern that Israel is ready to attack Iran's nuclear installations, starting a conflict likely to cut supply from OPEC's second-largest oil producer. Futures climbed to a record $145.85 a barrel yesterday on speculation tension in the Middle East may worsen. ...

The government in Tehran has prepared and presented its reply ``with a focus on common ground and a constructive view,'' state television cited Saeed Jalili, secretary of Iran's Supreme National Security Council, as saying today in a telephone call with European Union foreign policy chief, Javier Solana.

More here and here:

...``We can confirm that there was a phone conversation this morning. Mr. Jalili called Mr. Solana. They had a good conversation and it was decided that they would remain in contact in the coming hours,'' Solana's office in Brussels said in a statement.

Iran's response to the incentives package was delivered by the country's ambassador in Brussels, the state-run Islamic Republic News Agency said, citing an unidentified official at the Supreme National Security Council. Iranian Foreign Minister Manouchehr Mottaki signed a response letter, the news agency said, adding that Jalili and Solana are scheduled to hold talks later this month. ...

Here's the written package the US, Britain, France, Russia, China, and Germany offered Iran June 14 via Solana.

Posted by Laura at July 4, 2008 09:32 AM