The US President George Bush has described the detention of fifteen British sailors by Iran last week as inexcusable and rejected the idea of a quid pro quo for their release.
He referred to the sailors as hostages and said he supported the British Government's efforts to resolve the stand-off with Iran peacefully.
Iran's President has said the British government was not following what he called ‘the legal and logical way’ in the case and continued to demand an apology.
Iran is reported to have begun legal proceedings against the 15 British sailors and marines who were seized in the Gulf eight days ago.
Iran's ambassador to Russia had denied media reports quoting him as suggesting that the 15 British naval personnel being held by Iran might be put on trial.
'The network has made a mistake in translating the comments about detained British personnel and has reported the possibility of their trial,' Gholam Reza Ansari told the Iranian state news agency, IRNA.
Mr Ansari was referring to an interview he had given last night to Russia's Vesti-24 television.
He had been widely quoted as having said the legal proceedings had already started.
Iran says the military personnel illegally crossed into its territory, but Britain insists they were in Iraqi waters and has demanded their immediate release.
The US government earlier ruled out a suggestion that the 15 could be freed in exchange for five Iranians being held by the Americans.
The Iranians were detained by the Americans last January.
EU foreign ministers have meanwhile called for the immediate release of the sailors and marines.