In what appears to be a big shift in foreign policy, U.S. VicePresident Joe Biden publicly reached out to Iran during a major,wide-ranging address to international leaders and security experts inMunich, Germany, raising the possibility of a new era in U.S.-Iranianrelations.

U.S. Vice President Joe Biden wasted no time,telling world leaders he represents a new administration in Washingtonand a "new day" setting the tone for a diplomacy first approach byreaching out to Iran.

US Vice President Offers Iran a Chance and a Choice

"Our administration is reviewing our policy towards Iran, but this much is clear: We will be willing to talk," he said.

US Vice President Offers Iran a Chance and a Choice

But the vice president says Iran must also be willing to change.

US Vice President Offers Iran a Chance and a Choice

"Continuedown the current course, then there will be continued pressure andisolation. Abandon the illicit nuclear program, and your support forterrorism, and there will be meaningful incentives," he said.

Tensionsbetween the United States and Iran center on Iran's pursuit of nucleartechnology. Iran claims its program is for peaceful purposes,something the United States and its Western allies dispute. Theycharge Iran is secretly pursuing nuclear weapons, and the UnitedNations Security Council has sanctioned Iran three times.

And Biden says the U.S. will be ready if Iran refuses to sit down and talk.

"Wewill continue to develop missile defense to encounter the growingIranian capability, provided the technology is proven and it is costeffective. We'll do so in consultation, with you our NATO allies, andwith Russia," he said.

The U.S. relationship with Russia isanother sensitive issue for the new administration. Biden admits therehas been a "dangerous drift in relations" between the two powers. LikeBiden, French President Nicholas Sarkozy says improving ties betweenRussia and the West is key.

He says confidence must be restoredand says he doesn't think the Russia of today is a military threat toNATO or the European Union.

Other leaders are waiting to hear more on the new U.S. approach. German Chancellor Angela Merkel is among them.

Shesays Germany is willing to go along with the U.S. and pursue talks withIran. But she warns Germany is ready to embrace stricter sanctions iftalks do not work.

European countries broadly welcomed Mr.Obama's election and Biden's presence at the conference normallyattended by the U.S. defense secretary sent an important signal toEurope that the Obama administration was keen to rebuild relations.