IRAN last night said there would be no need for a trial of the 15 military captives, signalling a lowering of the temperature in the dispute with Britain.
One of Iran's most powerful figures - Dr Ali Larijani, secretary of Iran's Supreme National Security Council - set out the regime's demands in exchange for a diplomatic resolution to the 12 day-long stand off.
Both sides yesterday moved away from public confrontation to private negotiation.
Hopes were raised as Dr Larijani said Tehran wanted the crisis resolved through diplomacy. "We definitely believe this can be resolved," he told Channel 4 News through an interpreter. "There is no need for any trial any more.
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Iran's priority "is to solve the problem through proper diplomatic channels", he said.
However Dr Larijani insisted that Britain had "violated" its territory, adding that Iran was "not in the stone age" and did possess GPS technology to prove its case. He also called for an independent delegation to resolve the dispute over whether the British crew had been in Iraqi or Iranian waters at the time of their kidnap.
Sending a clear signal that he expected Britain to apologise, he called on the government to be "brave" enough to admit its mistake.
The Foreign Office last night said that diplomatic contacts with Tehran were continuing.
Apart from wider political clashes over Iran's nuclear capabilities, negotiations for the crew's release have also been slowed by the Iranian New Year.
But a press conference today with the president, Mahmoud Ahmandinejad, is expected to clarify the regime's position further.
Meanwhile, Downing Street admitted there was a lot going on "behind the scenes", as there was confirmation that a letter had been sent to the Iranians outlining how future disputes in the contentious Persian Gulf could be avoided.
An Iranian television report welcomed a so-called change in Britain's stance, away from the very public attempts to isolate Iran.
"If this path continues, one can hope that the issue would be resolved in a bilateral process and far away from fuss and clamour and with achieving Iran's logical demands," state-run TV said.
Karim Sadjadpour, an Iran expert at the Carnegie Endowment for International Peace in Washington, told The Scotsman that Iran would not want a serious confrontation.
"They just want to show the West that this approach of pressure is not going to work and Iran can reciprocate.
That's why you see this schizophrenic mood in Tehran. On the one hand they want to make it clear they're not going to be put under pressure and on the other that they don't want a confrontation."
• A former American FBI agent has gone missing in Iran while on private business there, the US state department said last night.
The United States said it was sending an official inquiry to Iran via Swiss diplomats, who act as a go-between with Tehran because the two countries do not have diplomatic relations.
The man is believed to have gone missing on Kish Island, off the southern coast of Iran, on about 11 March.
A spokesman for the state department denied any link between this incident and the detention of the 15 British personnel.
Penny Banks, 49, and her husband Allistair, 52, said many people were "incredibly proud" of Royal Marine Mark Banks.
"We would like to thank everyone who has provided, and continues to provide, support and encouragement at this very distressing time," said Mr and Mrs Banks, of Lowestoft, Suffolk.
"We know Mark would be very humbled and overwhelmed by the huge amount of love and support his friends and family have shown.
Mark is a very strong and determined lad and we hope he is drawing strength and courage in the knowledge that he has so many people that are incredibly proud of him.
"Our thoughts and hopes are for his safe and speedy release along with his fellow comrades. We miss him immensely, but know he has the strength of character to get through this difficult time, and look forward to seeing him at home soon.
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Marine Banks, 24, is understood to have served in the armed forces for about three years.
Meanwhile, the family of Royal Marines Captain Chris Air spoke of their pride of him. In a statement, the family said television footage "actually brought us some comfort, even though we also hold to the belief that it is a wrong action by the Iranian authorities".
Cooler heads will prevail, as they always will.
Some who speak of invasion , bombing and cowardice only show why they would never be diplomats.
We are never quite as angry the morning after.
Somebody has to submit.
I wonder who is going to be the submissive one?
Will it be Brittain or Iran?
Politicians on neither side can submit lest they appear weak or lose face. And then if a war breaks out it's not their children who have to go die.; it's our kids.
We should just lock Blair, Bush, Cheney, Mugtada al Sadr, Bin Ladin and Ahmadinejad in room with two knives. Whoever walks out gets to think they won. The rest us can just go live our lives without wars or fighting.
All the prisoners of war, enemy combatants, hostages, etc get to go home to their families. If more courageous leaders pop up trying to volunteer our kids for a war, we lock them up in the room with the knives.
The Iranians have long memories of British intervention and exploitation.
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hence the animosity to pressure which in fact will get them nowhere.
It would be a far better cry to have a bad agreement than a good fight.Something along the line of
if I did in fact i did infringe into your territory then
of course you have my apologies I think that would satisfy both parties.
Perhaps some agreement before it happens again might be prudent...
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..50 50 hindsight maybe
So Iran does have some real politicians, thank god.
The sooner we can start talking to them the better. Dinnerjacket needs to be isolated and marginalised.
I still can't rationalize in my mind how the British were the antagonists in this case.
However, I can clearly see how Iran was. I'm also having trouble convincing myself that all this talk about how the Brits mistreated Iran over the last hundred years is really at the heart of this conflict. I'm more inclined to think this is about current day matters.
I also don't think Britain or the US have unfairly antagonized Iran by their actions in Iraq. There was no love lost between Iran and Iraq before the overthrow of Saddam Hussein, so they certainly don’t miss him now. Although I’m pretty sure the Iranians would like to fill the power vacuum that was created with the overthrow of Saddam.
It looks more to me like the Iranian government is challenging Western culture and all those that support and represent it, and trying to convince the rest of the world that they are the new leaders of the anti-US movement. Of course, since Britain has a record of supporting the US that makes them targets for Iranian aggression as well.
This really makes me wonder.
Iran said that the sailors and marines all said that they were guilty.
That there was not going to be a trial.
Usually when you say you are guilty there isn't a trial but there is a sentencing.
My only hope and prayer right now is that they do let them go.
But since there were coherced into saying they were guilty there isn't any trial, but what of the sentencing? I keep reading NO TRIAL, but there isn't anything on a sentence.
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