Israel's military intelligence chief has allayed global concern that Tel Aviv may soon strike Iran, suggesting that Tehran be engaged.

Major General Amos Yadlin said Monday that the world financial crisis and Barack Obama's election as the next US president have offered a chance to halt the Iranian uranium enrichment program through diplomacy.

The United States, under the presidency of George W. Bush, has long pursued a carrot-and-stick policy toward Tehran over its nuclear program.

The new US president-elect, however, has vowed to engage Tehran in direct diplomacy in order to resolve the nuclear dispute.

Obama's proposed policy has been met with the stark opposition of Tel Aviv, where Israeli officials have described talks between Tehran and Washington as a form of 'weakness' for the White House.

The Israeli intelligence official, however, asserted that he is not opposed to direct talks between the United States and Iran, arguing that 'dialogue is not appeasement'.

Yadlin's remarks come amid speculation that Israel may strike Iranian nuclear installations in Iran before Obama takes office in January.

While Yadlin dismissed the prospect of 'a war between Israel and its enemies over the next year', he warned that Israel's military power has been at its peak since 2000.

The Israeli official said there is 'a low probability' that Israel may face a calculated attack but claimed the likelihood of small-scale attacks to be very high, warning that such attacks could escalate into a bigger conflict when Israel responds.

The US and its European allies have long portrayed Iranian missile capabilities as an existential threat to Israel.

Tehran, however, insists that its military capabilities are for defensive purposes. Defense Minister Mostafa Mohammad-Najjar said in September that 'while we do not intend to attack any country, we will stop at nothing to protect the country's sovereignty.'

CS/AA