Iran is willing to pursue a balanced and pragmatic policy in its dealings with Europe, and engage rationally with both East and West, an Iranian diplomat said in Berlin on Friday.

"Meanwhile, Iran can prove to be a chess piece for Europe to ease the dual pressure between East and West," said the diplomat, who did not want to be named.

"Despite American displeasure, Iran has shown that it is willing to pursue a wise, balanced and pragmatic policy in its dealings with Europe."