Mohamed ElBaradei, the director of the International Atomic Energy Agency (IAEA), welcomed the American offer made yesterday to talk directly with Iran about its nuclear weapons program. ElBaradei, the 2005 winner of the Nobel Peace Prize, told a crowd in Memorial Auditorium yesterday afternoon that he sees “on both sides a desire to reach a settlement.”

In a significant policy reversal, Secretary of State Condoleezza Rice announced yesterday morning that the United States would join multilateral negotiations with the Europeans and Iranians on the condition that Iran suspends its uranium enrichment reprocessing activities and allows IAEA inspectors into the country.

“I have been talking to Secretary Rice, and I see a clear commitment by the U.S. to find a diplomatic solution to the Iranian issue for a variety of reasons,” ElBaradei said.

“I spoke today with the Iranian National Security Advisor urging him to seize that opportunity,” he added. “Of course, they are somewhat unhappy with the tone of the statement, but my advice was to focus on the message.”

As the conflict has intensified, ElBaradei has perhaps spent more time than anyone else with senior American and Iranian leaders, who have not spoken directly or had formal diplomatic ties with each other since the 1979 Islamic revolution.

With the high-stakes negotiations seemingly about to enter Act Two, ElBaradei said an agreement was both necessary and possible. He said he hoped a balance could recognize Iran’s right to develop nuclear energy for peaceful purposes while suspending its attempts to enrich weapons-grade uranium.

“Against all odds, I am optimistic that ultimately we will find a solution,” he said. “This is a problem that has been going on for 50 years. There is a lot of grievances [sic]. However, I think both sides realize they need to cohabitate. The only solution is a negotiated one perceived by everyone to be fair.”

A sticking point in any direct negotiations will be Iran’s right to continue its nuclear program.

“The big ticket item is this suspension of the research within Iran,” he said. “We should be able to find a solution to that.”

A week before the 25th anniversary of Israel’s preemptive strike on Iraq’s Osirak nuclear reactor, the diplomat sharply rebuked the use of force as a viable option to respond to Iran’s aggressive uranium-enrichment program.

“I don’t think there’s a military solution because you cannot bomb the knowledge that has already been achieved,” he said. “Force does not solve problems. In fact, in many cases, it creates additional problems.”

He downplayed concerns that harsh rhetoric coming out of Tehran and Washington could undermine diplomacy.

“If you’re in the business I’m in for 40 years, you know how to separate the wheat from the chaff,” he said. “There’s a lot of rhetoric from both sides. But we need to always distinguish between public diplomacy, as you call it, and real diplomacy. Public diplomacy sometimes is not a reflection of what is going on behind closed doors.

“My business is to listen to what is happening behind closed doors and tell people to lower the pitch in [their] public diplomacy because sometimes it isn’t helping,” he added.

The world’s fourth largest exporter of oil, Iran — which was included in President George W. Bush’s 2002 Axis of Evil — has proven itself to be America’s most difficult counterweight in the turbulent Middle East.

“Iran has a lot of influence that could be used positively or negatively in Iraq, Afghanistan, Syria, Libya and the Palestinian territory,” ElBaradei said.

He predicted a nuclear arms race — what he termed a “cascading effect” — if Iran progresses with its weapons program.

“If you had Iran develop nuclear weapons, you’d see a much more agitated Middle East with a lot more countries trying to develop nuclear weapons,” he said.