U.S. President Barack Obama reached out to Iran in a video message on Friday, saying his administration was committed to diplomacy in this "season of new beginnings."
The Farsi-subtitled video was released as Iranians of all faiths celebrate the festival of Nowruz, which means "new day."
The festival, a major secular holiday in Iran, marks the arrival of spring.
"In this season of new beginnings I would like to speak clearly to Iran's leaders," Obama said in the video.
"We have serious differences that have grown over time. My administration is now committed to diplomacy that addresses the full range of issues before us, and to pursuing constructive ties among the United States, Iran and the international community."
However, Obama warned that the process would not be advanced by threats.
"We seek instead engagement that is honest and grounded in mutual respect," he said.
Iranian President Mahmoud Ahmadinejad has said he was willing to engage in talks with the U.S. but only if mutual respect was shown.
Iranian officials say they want the U.S. to stop accusing them of trying to build nuclear weapons and of supporting terrorism.
Iran's supreme leader Ayatollah Ali Khamenei has also criticized Obama as being a continuation of former U.S. president George Bush.
Ali Akbar Javanfekr, a senior advisor to Ahmadinejad, said the U.S. must recognize its past mistakes before any engagement can take place.
"By fundamentally changing its behaviour America can offer us a friendly hand," he told Reuters.
"Unlimited sanctions which still continue and have been renewed by the United States are wrong and need to be reviewed," he said.
Obama said the U.S. wants Iran to take its "rightful place" in the community of nations.
"You have that right, but it comes with real responsibilities, and that place cannot be reached through terror or arms, but rather through peaceful actions that demonstrate the true greatness of the Iranian people and civilization," he said.
Obama has previously indicated a willingness to engage Iran.
At his inauguration, Obama said his administration would reach out to rival nations and "extend a hand if you are willing to unclench your fist."
Aides to the president say Friday's video was an attempt to speak directly to the Iranian people.
"With the coming of a new season, we're reminded of this precious humanity that we all share. And we can once again call upon this spirit as we seek the promise of a new beginning," the message said.
With files from The Associated Press
