Tehran, Jan. 4 (Reuters): Ordinary Iranians are cheering a warming of diplomatic ties between Tehran and the US brought on by the Bam quake, and hope an end is in sight to a quarter century of isolation from a country many openly admire.

Even though conservative Tehran newspapers may rail at “earthquake diplomacy” by George W. Bush, many average Iranians on the capital’s streets today said they welcomed the US President’s overtures that may rebuild severed ties.

“I was overjoyed when I first heard American planes were going to fly in to help Bam,” said Hassan Tayebi, 51, a retired civil servant, referring to the December 26 earthquake that destroyed the southeastern city. “I really like Americans. They are really kind people and I hope the aid offer leads to better relations.”

Many Iranians show a more favourable attitude to the US than their own government does. Bush relaxed US banking restrictions on the Islamic Republic — which he accuses of being part of an “axis of evil” backing terrorists — to help speed relief efforts.

Iran rebuffed one particular US offer of a senior humanitarian mission, but appreciative Iranian leaders have hinted the friendly US steps may prompt reciprocal gestures.

Washington cut ties with Iran in 1980 after the 1979 Islamic revolution ushered in an anti-American government, which let radical students storm the US embassy and hold 52 Americans hostage for 444 days until 1981. The embassy was confiscated by Iran and houses a museum critical of the US.

“I hope the earthquake policy can serve as a starting point for Iran and the US,” said Anita, 27.

“I don’t think Iranians harbour bad feelings towards Americans. And I don’t think Americans hold grudges against us. The problem is, Iran closed its door to America years ago and Americans wrongly think we hate them.”

Many Iranians are well tuned into the US, which is now home to about two million of their kin, most of whom left in waves after the pro-Western Shah was ousted.

It sometimes seems almost everyone in Tehran has at least one relative or friend living there. “I really hope the two countries forget the past conflicts and concentrate on how much we have in common,” said Kianoush Mirrezai, 34, a doctor.