The United States has reacted warily after President Mahmoud Ahmadinejad of Iran appeared to accept a deal to swap enriched uranium for nuclear fuel. “Ahmadinejad said Iran would have ‘no problem’ if most of its stock was held for several months before being returned as fuel rods. The US said that if this was a new offer, it was ‘prepared to listen’. Soon after the statement, Iranian state TV announced the successful launch of a satellite rocket carrying an ‘experimental capsule’. The West is concerned about Iran's growing missile technology and possible links to its nuclear programme. Iran insists its nuclear development and rocket programme are entirely peaceful. A deal struck in October between Iran, the International Atomic Energy Agency (IAEA) and the so-called P5+1 - the US, Russia, China, UK, France plus Germany - envisaged Iran sending about 70% of its low-enriched uranium to Russia and France where it would be processed into fuel for a research reactor.”