Berlin, Germany: The foreign minister of Germany is urging Iran to respond positively to the new US administration's readiness for direct engagement.

He has called on its leaders to "be sensible" for their own people's sake.

Frank-Walter Steinmeier stressed that "we need a diplomatic solution" in the long-running dispute over Iran's nuclear ambitions.

Steinmeier told parliament on Friday that "it is good that Obama has reached out his hand and shown readiness for direct talks with Iran."

He added: "I think it is time for us also to appeal to Iran and the Iranian leadership not to reject this hand."