US policy on Iran called ineffective

WASHINGTON (Reuters) - In its drive to build an international consensus against Iran developing nuclear weapons, the Bush administration has made a significant concession but failed to develop an effective strategy for resolving one of its greatest challenges, experts say.

Tough U.S. threats have given way to a more pragmatic approach as Washington encouraged key European Union states -- Britain, France and Germany, or EU 3 -- to lead in persuading Tehran not to pursue atomic arms and related activities.

U.S. officials insist they are making progress in isolating what they call an ever more radical Iranian government.

But the diplomacy so far has failed to halt Iran's nuclear-related activities, which Tehran insists are purely for peaceful energy purposes. Some people worry an Iranian bomb may be inevitable and that other states will follow suit.

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