WASHINGTON, March 11: In a major departure from its policy of isolating Iran diplomatically and economically, the Bush administration on Friday dropped its objection to the Muslim nation joining the World Trade Organization and offered to sale airline parts to the country.

Secretary of State Condoleezza Rice said the move aimed at supporting efforts by three European nations Britain, France and Germany to persuade Iran to abandon its nuclear programme in return for economic incentives and promises of better ties with the Western world.

Today’s announcement demonstrates that we are prepared to take practical steps to support European efforts to this end. The spotlight must remain on Iran, and on its obligation to live up to its international commitments, she said.

Iran rejects the claim as incorrect and says its nuclear programme aims at producing electricity. The US rejects the Iranian explanation saying that a country rich in natural energy resources does not need nuclear power to produce electricity.

On Nov 14, Iran accepted a new deal put forward by French, British and German diplomats, known as EU3, committing to bring an immediate end to all enrichment-related and reprocessing activities.

“In order to support the EU3’s diplomacy, the president has decided that the US will drop its objection to Iran’s application to the World Trade Organization and will consider, on a case-by-case basis, the licensing of spare parts for Iranian civilian aircraft, in particular from the European Union to Iran,” Ms Rice said in a statement issued in Washington.

The statement added that Washington shared EU concerns on Iran’s human rights record and its support of groups such as Hezbollah, which are on the State Department list of foreign terrorist organizations.

The Europeans have been very clear with the Iranians that there will have to be certain objective guarantees that Iran is not trying to use a civilian nuclear programme to provide cover for a weapons program, Ms Rice said.