Tony Blair welcomed the release of 15 captured personnel today and said that the crisis had opened up new and valuable lines of communication with Iran.

But he contrasted the celebrations with the “sober and ugly reality” of the deaths of four British soldiers in Iraq.

Mr Blair, speaking in Downing Street as the British Airways plane carrying the 15 sailors and marines home from Tehran prepared to touch down, said: “Just as we rejoice at the return of our 15 personnel, so today we also grieve and mourn for the loss of our soldiers in Basra who were killed as a result of a terrorist act.”

The Prime Minister went on: “On the one hand we are glad that our service personnel returned safe and unharmed from their captivity but on the other we return to the sober and ugly reality of what is happening through terrorism in Iraq.”

Mr Blair used his statement to condemn Iran’s continuing involvement with terrorist activities in neighbouring Iraq: “It’s far too early to say that the particular terrorist act that killed our forces was an act committed by terrorists who were backed by any elements of the Iranian regime, so I make no allegation in respect of that particular incident,” he said. “But the general picture, as I have said before, is there are elements at least of the Iranian regime that are backing, financing, arming, terrorism in Iraq.”

Mr Blair said the British Government had pursued a “dual-track strategy” over the past two weeks, being open to dialogue with the Iranian regime, but at the same time exerting pressure and mobilising international support. “In my view it would be utterly naive to believe that our personnel would have been released unless both elements of the strategy had been present,” he said.

Mr Blair said “new and interesting lines of communication” had been opened up with the Iranian regime which it was “sensible”to pursue. “This is the right time to reflect on our relationship with Iran,” he said. “There is a different relationship available with Iran if it wants it.”

However he said that there must be no weakening of resolve in dealing with Iran on other issues. “The international community has got to remain absolutely steadfast in enforcing its will, whether it is in respect of nuclear weapons or in respect of the support of any part of the Iranian regime for terrorism, particularly when directed against democratic governments,” he said.

Mr Blair insisted that there had been no deal about releasing Iranian prisoners in Iraq or on any other matter. He insisted that the British detainees had been released “without any deal, without any negotiation, without any side agreement of any nature whatever”.

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