The EU's latest sanctions on Iran seemed to have paid off after President Mahmood Ahmadinejad said he is ready for new talks with the West.

Just as the war of words between Iran and the West escalated, President Ahmadinejad has been quoted as saying he was ready for new talks with the West.

"They have this excuse that Iran is dodging negotiations while it is not the case...," Ahmadinejad was quoted as saying by state-run TV.

"Why should we run away from the negotiations?"

The leader's new revelation is set to be seen by observers as a consequence of increased pressure put on Tehran by both the US and the EU in recent months.

The Islamic republic has been harshly criticised by the West following its refusal to halt its controversial nuclear programme or to come back to the negotiating table.

However in a new twist, Iran might now be ready to soften its hard-line stance. The move might have been motivated by the EU's latest set of sanctions.

Targeting the financial sector, the European Union last week formally adopted an oil embargo against Iran and a freeze of the assets of the country's central bank.

The EU said it hoped the measures would put a strain on Iran's economy and force the country to reconsider its position regarding its nuclear programme.