"I announce that the Iranian nation and the government of the Islamic republic -- while insisting on our power and right to try these military personnel -- have pardoned these 15 people, and we offer their freedom to the British people," he said.
- MORE: Coverage in Persian from Radio Farda.
Ahmadinejad said the British sailors and marines would be taken to Tehran airport immediately after the press conference. Britain welcomed the announcement and said it is seeking details on the timing and method of the release.
After the press conference, Iranian state television showed Ahmadinejad shaking hands and speaking with some of the Britons at the presidential palace. Iranian television now reports that the Britons will leave Iran on a plane on April 5.
Handing Out Medals
The Iranian leader made the surprise announcement at the end of a lengthy speech, during which he decorated the military officials responsible for the arrest of the British personnel.
"Here, as a representative of the great Iranian nation, I want to thank -- with a medal of third-degree bravery -- the courageous commander of those brave border guards who defended our borders and arrested the intruders," Ahmadinejad said as he presented the awards.
A few minutes before the announcement, Ahmadinejad said Iran will not allow anyone to violate its borders. He accused Britain of committing an "act of aggression."
"The beloved Iranian nation is displeased with the British military aggression against its territorial waters," he said.
Iran seized the Britons in the Persian Gulf on March 23 after accusing them of violating its territorial waters.
Britain says the group was carrying out routine antismuggling operations in Iraqi waters, but Iran says that their global positioning system (GPS) devices show they intruded in Iranian waters.
Criticism Of U.S. Iraq Policy
Ahmadinejad made the announcement at the end of a lengthy address, during which referred repeatedly to the Koran and the modern history of the Middle East.
He decried the U.S.-led invasion of Iraq in 2003 as based on the fallacy that the country had weapons of mass destruction. He said that although Iraq now had an elected government, "the occupation forces continue to stay there and people are still being killed."
Ahmadinejad's announcement came after Iran earlier welcomed a "change of tone" from London in the crisis over its seizure of 15 British sailors.
The British government on April 3 confirmed that it had direct contact with Iran's top security official, Ali Larijani, regarding the detainees, who were captured on March 23 in the Persian Gulf.
Today, Downing Street welcomed the Iranian announcement about the release of its sailors.
The crisis has come at a perilous time for Iran's relations with the West, with the United States refusing to rule out military action over the Iranian nuclear program and the United Nations imposing tough new sanctions.
Oil prices fell after Ahmadinejad announced the release. Prices had risen steadily since Iranian forces detained the Britons. Oil prices had taken a downward turn before Ahmadinejad's announcement because of signs that a diplomatic solution to the crisis was imminent.
Copyright (c) 2007. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org