Iran

Reliance Industries (RIL), the largest private company in the country, has decided to stop gasoline supplies to Iran after fulfilling all contractual obligations.

This follows a letter written by eight US Congressmen to that country's Export-Import Bank (Exim Bank) asking it to immediately suspend all financial assistance to RIL until the company agrees to stop selling gasoline to Iran. The Exim Bank has provided two separate loan guarantees worth $900 million, including a $400-million loan by JPMorgan in August. The loan was for funding RIL's expansion program.

Dear Senator Obama,

We the undersigned may have different views on U.S. foreign policy with respect to Iran. We all, however, are deeply concerned about the stories in the press in the past few weeks suggesting that the Bush administration might be considering a military strike on Iran, that it might give a green light to such an attack by Israel, or that it might engage in other acts of war, such as imposing a blockade against Iran.

Tehran would target the heart of Israel and 32 U.S. bases in the Middle East if Iran is under attack, an aide to Iranian supreme leader Ayatollah Ali Khamenei said Saturday.

"In case the United States and Israel dare to shoot a bullet, Iran will target the heart of Israel and 32 U.S. bases in the region imminently," said Mojtaba Zolnoor, vice representative of Khamenei to Iran's Islamic Revolutionary Guards Corps (IRGC), the semi-official Fars News Agency reported.

America's top military officer has said opening up a third front in the Middle East through a strike on Iran would be "extremely stressful" for US forces.

Adm Mike Mullen, chairman of the Joint Chiefs of Staff, was commenting on the likelihood of US or Israeli military action over Iran's nuclear programme.

Tensions have risen amid reports Israel may be planning a possible strike against Iran's nuclear facilities.

Iran denies its nuclear programme is anything other than peaceful.

KYOTO, Japan, June 27, 2008 -- The Group of Eight (G8) foreign ministers on Friday called on Iran to cooperate fully with the International Atomic Energy Agency (IAEA).

Expressing serious concern over the proliferation risks posed by the Iranian nuclear program, the ministers strongly urge Iran to "answer all of the IAEA's questions without further delay" and comply with its international obligations and suspend all enrichment-related activities.

Iran's official news agency (IRNA) says Tehran would consider any U.S. request to set up a diplomatic presence in the Islamic Republic.

A Foreign Ministry official quoted by IRNA Tuesday said "in principle, Iranian officials will consider requests they receive through formal channels."

International Atomic Energy Agency (IAEA) chief Mohamed el-Baradei warned on Saturday that any military strike on Iran could turn West Asia to a “ball of fire” and lead Iran to a more-aggressive stance on its controversial nuclear program.

Tehran Friday warned its arch-enemy Israel of a "strong blow" if it takes forceful measures, after the US media reported military exercises by the Jewish state were a possible practice for a strike against Iran.

"If enemies especially Israelis and their supporters in the United States would want to use a language of force, they should rest assured that they will receive a strong blow in the mouth," senior cleric Ayatollah Ahmad Khatami said in his Friday prayers sermon.

Iran has protested to the United Nations about a warning by a top Israeli official that the Jewish state will attack Iran if it fails to halt its alleged nuclear weapons program.

Iran's U.N. mission issued the protest in a letter Saturday to U.N. Secretary-General Ban Ki-moon.

Israel is backing away from a threat to attack Iran.

Israeli defense officials have rejected comments by Cabinet Minister Shaul Mofaz, who said last week that an Israeli attack on Iran's nuclear facilities is "unavoidable."