In a complete change in direction, the Bush administration has signaled a willingness to participate in negotiations with Iran. Provided the Iranians meet certain strict criteria.
The United States is willing to join European nations in direct talks with Iran if the Iranian government first agrees to suspend its programs to enrich uranium and reprocess spent nuclear fuel, activities that Washington charges are part of plans to build nuclear weapons.
Secretary of State Condoleezza Rice, announcing the U.S. policy shift at a State Department news conference today, warned that if the Iranian government does not choose the path of negotiations and continues to pursue atomic weapons, "it will incur only great costs."
I think this is a pretty good approach right now. It puts the ball directly back in Iran's court and insulates the US from charges that we are causing the problems with Iran. There is no word where China and Russia stand at the moment, though.
UPDATE: And already rejected out of hand by Iran. Gee, never saw that coming.