Middle East Inside Line: Abbas-US Tension, Netanyahu's "Political Risk", More Gaza Flotillas?, UN-Israeli Relations

Palestinian Leader Abbas Presses US: Palestinian Authority leader Mahmoud Abbas, talking to his Fatah Party, said that he wants a more specific US commitment on the borders of a future Palestinian state before agreeing to direct talks with Israel.

During a phone conversation after his meeting with Israeli Prime Minister Benjamin Netanyahu, President Obama reportedly pledged Abbas that he would forth ut his own map if Netanyahu did not bring one before the winter. However, it appears that Abbas wants something more concrete: “With all due respect to the American president, his message was not clear. We want clear answers to questions we presented to the Americans, especially regarding security, borders and the status of Jerusalem. We continue to insist that any negotiations with Israel be based on recognition of 1967 as the future borders of the Palestinian state.”

Middle East Inside Line: Turkey-Hamas-Israel, Netanyahu Denies “Map”, No Russia Missiles to Iran?

Next week, the Fatah Central Committee and the Executive Committee of the Palestine Liberation Organization are scheduled to hold meetings in Ramallah on the peace process and the financial crisis within Fatah.

US Responds to Abbas: State Department spokesman Philip J. Crowley said that final status issues are to be discussed in direct talks. Asked whether or not the United States had an idea of what the borders of the future Palestinian state would look like, Crowley said that Washington would " play a constructive role, but ultimately this is a - this is something that the parties themselves have to resolve."

But the question is: So why did we have the proximity talks? With no fruitful consequences, this process in prior to the expected/pressured direct talks is far from facilitating the reflexes of both parties, especially of the Palestinians.

Netanyahu's "Political Risks": On Wednesday, Prime Minister Benjamin Netanyahu told the European Union's foreign policy chief Catherine Ashton that he is ready to take a political risk to reach an agreement with the Palestinians, but only if he does not have to take a security risk.

Netanyahu did not say whether he will end the freeze on Israeli construction in the West bank but Minister of Intelligence and Atomic Energy Dan Meridor told Army Radio on Tuesday that, at the end of September, Israel will no longer be bound by it:

My view is that it would be wrong to build in places where there will be a Palestinian state. But it would be right to build in places that are destined to be part of the State of Israel, in the settlement blocs and the communities along the [separation] fence. The government needs to discuss this.

Israel Defense Force Strikes: On Wednesday, Israeli Defense Forces fired uon a group of Palestinians approaching Gaza's northern border with Israel. It is reported that two people were killed, one of whom is claimed to be a top Islamic Jihad militant. Palestinian medical workers say seven people were wounded, including a 10-year-old girl.

Later Wednesday, the IDF fired at a group of Palestinians attempting to infiltrate the West Bank settlement of Barkan, killing one of them. The IDF spokesperson's office said that the casualty was armed though the group was trying to enter the settlement for criminal and not terror-related purposes.

Other Flotillas Coming?: After the Turkish organisation IHH, backers of the Freedom Flotilla, stated that there will be more convoys to break the siege, another flotilla is reportedly being organized by Palestinian businessman Yasser Kashlak, who last month tried and failed to organise ships from Lebanon. The two ships are slated to sail from Libya by the end of this week.

The Israeli Foreign Ministry instructed ambassadors to ask senior officials in the US, United Nations, European Union, and Egypt to pressure Syria and Lebanon to stop the flotilla. Officials think that Cairo will help again as it did when recently diverting the Amalthea to its port of el-Arish.

It is also reported that American activists are trying to raise funds for their own ship to Gaza, which they plan to call The Audacity of Hope, the same title as a book by President Obama.

Israel's F-35 Dream Coming True?: Israel is expected to make a decision in the coming weeks regarding the purchase of the F-35 Joint Strike Fighter (JSF), senior defense officials said on Wednesday.

If Israel receives the jets, which will not be before 2015, it will be the first foreign country using them.

Israel is primarily concerned with the price of the aircraft, which could go as high as close to $150 million each. Therefore, officials are still considering whether it would be a better idea to get F-15s from Boeing.

UN-Israel Relations: On Wednesday, the UN Undersecretary-General for Political Affairs reported to the Security Council that aid convoys like May's Freedom Flotilla “are not helpful to resolving the basic economic problems in Gaza and needlessly carry the potential for escalation”. However, the report continued to call “for a prompt, impartial, credible and transparent investigation conforming to international standards” regarding the 31 May attack on the Flotilla. While the report underlined "the Quartet's efforts to bring direct negotiations", it said, "The prospect of expulsion from their home city of Palestinian legislators in east Jerusalem would be a serious step backwards and would undermine hopes of making political progress."

In response, Israel's Ambassador Gabriela Shalev underlined Israel's two demands: right to security from threats and recognition as a Jewish state. She said, "A request that Israel recognize a Palestinian state as the nation-state of the Palestinian people must be met with an acknowledgment that Israel is the nation-state of the Jewish people."

Shalev called on Hamas to release detained Israeli soldier Gilad Shalit and explained the definition of "peace": "Peace is not merely a signed document. It is a set of values that allows us all to live our lives in security and with hope –-- Israelis and Palestinian alike."

The Latest from Iran (17 July): Back to "Normal"?

2020 GMT: A Just Republic. Meeting students, former President Mohammad Khatami has declared that people want freedom and a republic compatible with religion.

2015 GMT: Electricity Squeeze. Power shortages are reportedly causing daily losses of millions of dollars for domestic companies, especially in Tehran area. The schedule of rotating closures announced by the Ministry of Energy is not being implemented.

NEW Change for Iran: Why Twitter Has Made a Difference
UPDATED Iran Analysis: When “War Chatter” Poses as Journalism (Step Up, Time Magazine)
Iran: Thursday’s Suicide Bombings in Zahedan
The Latest from Iran (16 July): Explosions and Conflict

2005 GMT: The Sanctions. It appears that Germany may be accepting the restrictions on Iranian banks: reports indicate Bank Sepah accounts in Frankfurt will be closed.

A study by a former US Treasury Department analyst had found that five German banks continue to do business with Iranian entities sanctioned by the most recent UN Security Council measures and that four major Iranian banks sanctioned by the Treasury Department or the Security Council continued to operate in Germany.

1940 GMT: Not Diplomatic Immunity (cont.). The Swiss and Iranian Governments have denied earlier reports (see 1605 GMT) in Iran's state media that Switzerland's Ambassador was detained for hours on a journey to northeastern Iran.

Switzerland's foreign ministry said Ambassador Livia Leu Agosti had only been "checked by local police during a trip". Iranian foreign ministry spokesman Ramin Mehmanparast said that the story had "been covered inaccurately and wrongly".

1935 GMT: Rafsanjani Watch. Former President Hashemi Rafsanjani has joined in the condemnation of Thursday's bombing in Zahedan,  "Historical records show that in Iran and countries like Iraq, Afghanistan and Palestine..., terrorists and occupiers have never been and never will be able to achieve their ominous objectives through bloodshed and the massacre of innocents."

However, Rafsanjani --- at least in the summary of his remarks --- did not echo the theme of blaming outside powers such as the US for supporting the attacks.

1815 GMT: The Bazaar Strikes. Green Voice of Freedom, summarising this week's strikes, adds Isfahan and Mashaad to Tehran and Tabriz.

1605 GMT: Not Diplomatic Immunity. Iranian authorites detained the Swiss Ambassador, Livia Leu Agosti, freeing her a few hours later.

Agosti was travelling in North Khorasan Province in northeastern Iran when she was arrested Diplomatic immunity did not apply, according to the Iranian Foreign Ministry, ""because her identity was not established at the time".

It is not clear why the Ambassador was detained.

1545 GMT: Russia, Iran, and the Oil Squeeze. I thought, given this week's news about agreement for a joint oil bank, that Moscow and Tehran were now good energy buddies despite the international sanctions.

So how to explain this bit of Tehran pressure?

Oil Minister Massoud Mirkazemi warned on Saturday that Iran will blacklist foreign firms like Russian energy giant Lukoil that pull out of projects because of sanctions against Tehran: "If one of the companies acts against Iran, we will be forced to consider the reality and put that company on a blacklist."..."They will no longer work in our country," he said.

Mirkazemi singled out the case of Lukoil, which announced it was pulling out in March as new UN, US and EU sanctions over Tehran's controversial nuclear programme loomed. The minister said the Russian firm had reneged on its commitments in the Anaran oilfield which it discovered in western Iran in 2005.

But he added that Iran might consider continuing to work with Lukoil "if we can adjust the content of the agreement."

1410 GMT: A Different Line on Zahedan Bombing. An interesting alternative to the US-Iran dynamic on blame for Thursday's two suicide bombings in southeastern Iran. The reformist Islamic Iran Participation Front has said that “an iron fist” is not an adequate response to the problems in Sistan & Baluchistan . Indeed, the violence occurs amidst the “coup d’etat government’s policies of intimidation, violence, and oppression which is being forced on every aspect of every single Iranian's life, equally”.

1245 GMT: In Case Another Excuse Was Needed for US-Iran Scrapping. President Obama has condemned the Zahedan bombings as an "intolerable offense".

Those words, however, are not going to stem the Iran Government's rhetoric over the attack. Revolutionary Guard commander Massoud Jazayeri has warned, "Jundollah has been supported by America for its terrorist acts in the past....America will have to await the fallout of such criminal and savage measures."

And it looks like Speaker of Parliament Ali Larijani is going to join in: "The terrorist attack in the southeast of the country took place with the backing of the US....We have strong documents and intelligence that [executed Jundullah leader Abdolmalek] Rigi was linked to the US, and the US supported him in terror against Iran."

1100 GMT: The Zahedan Bombings. The Government's changing line on Thursday's suicide bombings --- Jundullah is no longer responsible since they had been "defeated" --- is being challenged. Heshmatollah Fallahatpisheh, a member of Parliament's National Security Commission, has demanded publication of documents about Jundullah.

1050 GMT: Parliament v. President (On All Fronts). Challenges here, there, and everywhere....

Ahmad Tavakoli has maintained his leading role in the pressure against the Government, asking for an investigation of former Tehran Prosecutor General and current Presidential aide Saeed Mortazavi over the Kahrizak Prison abuse case.

On the economic front, Elyas Naderan has announced a plan to return Iran Telecom to public control. Emad Hosseini has declared that there is no possibility of implementing subsidy cuts.

And just getting personal, reformist Abdollah Ramezanzadeh has filed a complaint against pro-Ahmadinejad MP Sattar Hedayatkhah.

1045 GMT: More Feuding over Universities. The Guardian Council has rejected a Parliament project supporting the establishment and strengthening of independent academic centres.

1010 GMT: Parliament v. President. Khabar Online claims 80% of members of Parliament have approved the demand for impeachment of Minister of Agriculture Sadegh Khaliliyan.

1005 GMT: Regime Moves to "Hard War"? Bahram Rafiee in Rooz Online posts the analysis that the rhetoric of the regime is shifting from a "soft war" to "hard war" with its enemies. He cites an example in the Supreme Leader's speech to Revolutionary Guard commanders this week, “All national officials must carry out their heavy duties in the various fields and be ready to confront anything as they have been for the past 31 years. Certainly, and without any doubt, the great Iranian nation and the Islamic republic will continue to emerge victorious from this perpetual struggle, as they have been in the past.”

0830 GMT: After the Bombings. Iranian state media reports that 40 suspects have been arrested over Thursday's double suicide bombing in southeastern Iran. State TV has shown thousands attending victims' funerals, chanting "Death to Terrorists" and "Down with the US".

0810 GMT: We have posted a Saturday feature, "Change for Iran: Why Twitter Has Made a Difference".

0710 GMT: A Philosopher's Stand. The German philosopher Otfried Höffe has written in Frankfurter Allgemeine that he will not attend UNESCO's World Day of Philosophy in Tehran, given the human rights abuses of the "unpredictable dictatorship": "With [Immanuel] Kant's reflections on the relationship between philosophy and revelation, I wanted to contribute to our understanding of religion in a highly industrialized country. But now I see myself forced to withdraw from the commitment."

0625 GMT: Political Prisoner Watch. Azeri activist Firouz Yousefi has been released on bail after being arrested for acts against national security.

0555 GMT: Beyond the tragedy of at least 27 lives lost and 300 people wounded in Thursday's explosions in southeastern Iran (see yesterday's updates), there was the curiosity of the Iranian regime trying to resurrect the "normal" after the event.

Initially, Iran's state media had blamed the Baluch insurgent group Jundullah --- who did indeed claim responsibility --- for the two suicide bombings. Then some official somewhere realised that this would expose the recent narrative that, with a crackdown on Jundullah and the executive Abdolmalek Rigi, order and security had been restored.

And so the media line was revised: the bombings were no longer the work of Jundullah but of some mysterious "hard-line" Sunni group. "Normal" would come in the allegation --- for this is always the allegation --- that "the US, Israel, and some European countries" (the Revolutionary Guard's Yadollah Javani) were behind "terrorist attacks...trained, financed and equipped form beyond the borders" (Deputy Minister of Interior Ali Abdollahi). Washington even hid its perfidy behind the false "humanitarian gesture" of Secretary of State Hillary Clinton's condemnation of the bombings.

But this was not only the curiosity of the "normal". For the not-exactly-normal incident in Zahedan might serve the regime by deflecting attention from life that is not-exactly-normal elsewhere. With Iran back to work today, one question is whether bazaar merchants in Tehran and Tabriz join in or whether some stoppage or strike continues.

And there is the bread-and-butter conflict within the establishment. The New York Times has taken notice in an article, "Iran’s President Now Aims at Rivals Among Conservatives" --- which might also should have considered, "Iran's Conservatives Now Aim at the President" --- and adds this information. "Moderate conservative" Morteza Nabavi said in an interview published Friday, "“Now that they [the Government] think they have ejected the reformists, maybe they think it is time to remove their principalist opponents.”

Nabavi also indicated that part of the conflict stems from the beliefs of Ahmadinejad and allies over the return with Shia's "disappeared" or "hidden Imam: “These people say they have direct contact with the 12th imam so they can lead us. This is not just a matter of opposition to government by the clergy but something much deeper.”

Iran Document: Mousavi on UN Sanctions & Ahmadinejad Government (7 July)

From Kalemeh, translated by Negar Irani:

Unfortunately, the Security Council's resolution 1929 was finally passed. This resolution and other resolutions could have easily been avoided had we used some tact and wisdom.

If we are discussing this resolution today, it is not to pour further salt on a wound, rather because ignoring the consequences of this resolution will only make matters worse. Even if we state that this resolution is a pretext, it does not minimize the effects of tumultuous and manipulative policies. Of course swearing at and insulting other countries may have an effect on a small domestic audience with limited awareness; however, in reality it does nothing but further deteriorate the situation outside our borders.

Unfortunately, unlike certain politicians in our country who put their own personal interests above that of our country's national interests, we doubt that the authorities of the countries imposing sanctions on us define their own interests outside the framework of their country's national interests. I am hopeful that our nation paid close attention to the vulgar response given by Russia's Foreign Minister to one of the speakers. In his response he pointed to a fact that has been repeatedly witnessed in international relations, mainly that for Russia (and other countries, such as the United States, China, Turkey, Brazil and others) the most important criteria is protecting Russia's national interests --- although understanding this simple point seems to be difficult for those [in our country] who are unfortunately too wrapped up in their own short-term interests to even notice it.

To me, however, it abundantly clear that this resolution is going to have an adverse effect on our country's security and economy. It will lead to a reduction in our GDP, higher unemployment, and more economic and social pressures on our people, and it will result in a widening of the gap between the development of our country vis-a vis our neighboring countries, in effect, serving as the last nail in the coffin that was being prepared over the past twenty years. Anyone with any common sense will know that the passing of this resolution will only lead to the further isolation and vulnerability of our country.

The fate of other countries in the region that have proudly fallen for the empty rhetoric of such short-sighted nations is a pitiful fate of which we should all be conscious.

Currently, it is important to focus on solutions that will minimize the threats to our independence, territorial integrity, and the legitimate rights of our country. It goes without saying that safeguarding our freedom and the rights of our citizens and defending our national security will not be possible without the free and informed consent of our citizens. Green social networks must focus on solutions designed to safeguard us from this undesirable event.

Before pointing out some of these possible solutions, it is important that we condemn this cruel and unnecessary resolution. We are being condemned while Palestinian land is still easily occupied by others who are given the right to nuclear bombs, while we are deprived of the right to use nuclear technology for peaceful purposes. Surely this resolution is against our country. We must nevertheless also keep our eyes open to the effects of other existing, chaotic, and adventurous policies.

1. The first and most essential solution to countering this resolution is to ensure that our nation is informed in an honest and forthright manner. It is our people's right to better understand the details of this resolution and the additional sanctions that are being added to it. Our people need to understand the effects of these sanctions on the unemployment rate, on inflation, on our GDP, and on the ability of our nation to progress. In other words, they need to understand how it affects their bottom line. Referring to this resolution as a torn piece of paper is not going to solve the problems and challenges facing our nation. If our people have to face and fight an adversity that was not of their choosing, we must at least gain their trust; a trust that will only be developed through transparency and a government that is truthful and forthright.

2. One of the points of our people must be made aware is the predictable security risks resulting from this new resolution. Many of our citizens are unaware of extent of the dangers associated with the path that we have fallen into due to ignorance and exaggeration. The witty rants and boasts by certain individuals pretending that nothing has happened is nothing but betrayal of our people.

If our nation’s readiness is the most important element in fighting the potential dangers we face, then it is incumbent upon us to inform them as much as possible about the potential security consequences associated with the current situation we find ourselves in. If this is too difficult a task for those responsible for our government, they should at least allow non-government media outlets to freely inform our citizens of the necessary analysis with compassion and without exaggeration of the facts.

3. These new conditions require that we expand the current limited circle of advisors to the nuclear issue. As far as I am aware, unlike the era when Mr. Khatami was President, we currently have less people and individuals with far less experience than in the past, handling this sensitive matter. One of the main reasons why we find ourselves in this undesirable and critical position is due to this limited circle of advisers.

Governments of countries that have dealt with the nuclear issue successfully, in addition to having legitimacy, observe national alliances, building upon collective and even relative consensus. What is wrong with allowing our country's Parliament to make decisions with regards to the principles governing our country's nuclear policy the same way they made decisions with regards to the American hostages? Instead, our Parliament is left with no recourse but to come up with last-minute, dictated legislation designed to justify the incorrect decision-making processes of our government.

Why is it that a select few are making secretive decisions about matters that affect the future of our entire nation? Were our people not supposed to be in charge of their own destiny? Why should our people be in agreement with every decision we make? Are the principles associated with referendum meaningless in our society to the extent that every time some one refers to them they have to face a barrage of insults and threats? Should we not instead allow our people to be involved in sensitive and important decisions that affect our entire nation?

4. Under the current conditions, a rift between the people and the government will only result in a higher risk of danger from foreign influences and those with bad intentions. The rigged elections, the oppression that occurred after the elections, the mismanagement and corruption, and the deceitful and confusing economic and cultural policies have led to a crisis and lack of confidence in the government and a distancing of the people from the ruling powers.

Today, more than ever it is vital that we begin to pay attention to and address the solutions that were set forth in the Green Movement's statement #17 [on 1 January 2010]. A repressive and illegitimate government that is at war with its own people is ill-equipped to effectively deal with foreign threats. Under these circumstances, they [the illegitimate ruling government] have to either pay an unfair ransom or put the country at imminent risk.

As a result, creating a safe backdrop for free, fair, competitive and non-selective elections, and ensuring freedom of press, freedom of political prisoners, taking care of the families of those martyred and harmed becomes even more vital. If our people are our main asset for dealing with the serious situation we currently face, then their opinion and viewpoint should be respected. Before making any decisions, we must carefully consider the impact of these decisions on the lives of teachers, white-collar workers, labourers, salaried workers, the poor, and all those working hard to make a living in our society. It is not fair to have the youth who are seeking jobs pay the price of arbitrary and adventurous decisions made by the government.

Let us all bear witness to a bunch of hollering, baton-carrying thugs who do nothing but threaten the lives, livelihood, and dignity of our people in broad daylight and speak of bombarding our Parliament in broad daylight, all under the pretext of pro-government support. Is this how we run the world?

5. Fostering hatred, creating enemies, and continuing factional killings have only led to the regime becoming even more empty-handed. A brief look at the events that took place in New York and Geneva last year only shed more light on the weakness of this government. To overcome this dangerous crisis of management in our country will have to utilize every capacity at our disposal. The danger we face is significant enough that referring to important personalities such as Mr. Hashemi [Rafsanjani], Khatami, Rohani, Aghazadeh, Larijani, and others is a necessity. Is it not unfortunate that our former president [Mohammad Khatami, someone with wide international support and respect] would be prevented from traveling abroad, when his presence would have been instrumental in defending our nation's rights when it comes to nuclear technology? Everyone in our country is aware of the fact that most of the qualified managers and individuals who should be used as an elite force to run the country when in crisis have been excluded from all important policy making decisions. How should we view this obvious, extremely concerning, and controversial reality?

6. The current activities of the IRGC (Sepah) [Islamic Revolution Guards Corps] are questionable to say the least. On the one hand the IRGC and Basiji forces are aiming their weapons directly at the people of our nation instead of at our enemies, playing a key role in the oppression and interrogation of political forces and those opposing the regime. On the other hand the IRGC has also become involved in our nation's economy in an unprecedented manner.

Certainly, restoring the IRGC's original responsibilities will lead to reviving the honorable role of this institution as defenders of our sacred nation. It will also reduce the dangers resulting from greed and malice, enable a more healthy economy, reduce corruptio,n and further encourage the private sector. An IRGC that is more concerned with the volatility of the dollar on the open market and interference in the affairs of banking, the stock market and export and import contracts cannot be trusted with the security of our nation and our revolution.

Unfortunately we are currently witnessing the deterioration of popular support for the IRGC. If this trend continues, it is foreseeable that the IRGC will become exceedingly more interested in defending its own interest in the stocks of companies and institutions in which it is invested rather than defending our nation. Eventually this interest will transform them into authoritarian power that works against the best interest of our nation. If love and trust of the armed forces is considered one of their greatest assets, today the activities of the IRGC as it relates to the economy and our security have led to the significant decrease of their social capital.

We all know that the brave and chivalrous forces within the IRGC are fed up with this type of behavior. Let us not forget the people's hatred of the financial and security institutions during the time of the monarchy and to what extent they were instrumental in the people's anger. As a result of the resolution and sanctions imposed on our country, reviewing the role of the IRGC and Basiji should be a key concern for everyone looking for the best interest of our nation, regardless of our background or affiliation. Here I would like to also reiterate that the attack of the Basiji on Mr. Karroubi and Khatami , the events that occurred on 4 June of this year [the shout-down of Seyed Hassan Khomeini at the ceremony for his late grandfather] and the recent attack and insult of our parliament only further facilitates the interests and goals of those who have imposed the sanctions on our country.

7. The last point we need to focus on is that the sanctions are not designed to bring the government to its knees. If we look back at the experience of 19 August 1953 [the overthrow of Iran's Mossadegh Government] and the bitter fate of Iraq and Afghanistan in contemporary history, it should serve as a clear warning that some governments see their own survival in the continuation of this crisis and in intensified hostilities and that they even go as far as encouraging the use of a military offensive.

It is up to the Green movement to create reconciliation by remaining true to its principles while confronting this clear risk. Resistance to potential foreign threats and invasion is a necessity and ashould be an area of focus for the Green Movement. We must demonstrate to our people that the way out of this crisis is to return to the principles and solutions presented by the Green movement since its inception a year ago. The Green Movement should use its influence and power in the international arena to show foreign powers that it will not allow them to take advantage of the weakness and illegitimacy of the current ruling government and harm the territorial integrity and interests of our nation.

The Green Movement will continue to focus on building awareness within all sectors of our society and in doing so will not allow the oppressors [ruling government] to escape from accountability and responsibility towards our nation by creating a crisis and unnecessary military conflict. We will continue to fight the systematic suppression and intimidation of opponents of this government and will not allow them [the ruling government] to focus on their own short-term interests and in doing so compromise our national interests.

The Latest from Iran (7 July): Mousavi's Intervention

1900 GMT: Political Prisoner Watch. Bail for human rights activist Abdolreza Ahmadi, detained in March, has been set at $150,000.

1820 GMT: The Bazaar Strike and Government Climb-Down. The Los Angeles Times has a good overview of yesterday's developments over the stoppage in the Tehran Bazaar and the Government's reversal of a proposed increase in business tax.

NEW Iran Analysis: Crisis…What Crisis? (Verde)
NEW Iran’s New Haircut Law: First Culprit Identified!
Iran Document: The Mousavi-Khatami Meeting (5 July)
The Latest from Iran (6 July): Compromise?

1815 GMT: Mousavi on Sanctions (and the Economy and the Revolutionary Guard). Agence France Presse offers a useful summary of today's statement by Mir Hossein Mousavi (see 1430 GMT).

Mousavi, in a direct manipulation of the President's words, declared, "To say that this resolution is like a 'used hankie' will not ease the hardships arising from demagogic policies, as it is clear to me that this resolution will affect our nation's security and economy."

Mousavi continued by noting the impact of sanctions and hitting at the Government's folly for bringing Iran down on both the international and economic fronts:

This oppressive resolution ... will decrease GDP, increase unemployment, create more hardships for people and widen the gap between us and other developing nations, especially our neighbours.

[The Iranian people] should know the effect of this resolution ... on their livelihood, inflation, the nation's progress and security. If people are asked to resist (sanctions), then their trust should be earned by telling them the truth.

Mousavi then linked economic woes to the intervention of the Islamic Revolution Guard Corps,  "Bringing Sepah [the IRGC] back to its main responsibilities can decrease the greed of enemies ... and decrease the wave of corruption," he said.

1500 GMT: Rumour of Day. Iran Press News is claiming that the Tehran Bazaar, amidst this week's strike by some traders, is under heavy security. It claims there was an attack by men in plainclothes, with one merchant killed.

1430 GMT: A Double Intervention from Mousavi. Mir Hossein Mousavi has followed his Monday meeting with former President Mohammad Khatami with a further comment.

In a note on the recent UN Security Council resolution sanctioning Iran's nuclear programme, Mousavi extends remarks from the Monday meeting that the UN is wrongfully punishing Iran and adds that this is a product of the Ahmadinejad Government's wayward foreign policy.

Mousavi's website Kalemeh publishes a long editorial explaining that Mousavi does not believe church and state should be separates in the development of the Islamic Republic. The editorial is in part a response to an article in the Los Angeles Times that claimed Mousavi, in his recent "Green Charter", had advocated a secular Iranian system. (It is not stated what role, if any, Mousavi played in the writing and publication of the editorial.)

0840 GMT: The Bazaar Strike. Claimed video of yesterday's strike, protesting at a proposed 70% in business taxes, by merchants in the Tehran Bazaar:

[youtube]http://www.youtube.com/watch?v=QCSSy4HZP-U[/youtube]

0700 GMT: We have two contrasting features this morning. Mr Verde takes a long look at the significant anti-Ahmadinejad intervention by MP Ahmad Tavakoli and the Islamic Azad University dispute to ponder, "Crisis...What Crisis?".

If you prefer your news tongue-in-cheek, our top EA news spies have uncovered the first violator of Iran's new guidelines for men's haircuts.

0610 GMT: Political Prisoner Watch. An appeals court has upheld the six-year prison sentence of reformist activist and journalist Keyvan Samimi Behbahani, who has also been barred from political, social and cultural activities for 15 years.

Samimi Behbahani is the managing director of the banned publication Nameh and is also a member of the committee in charge of investigating the unlawful arrest of individuals.

An appeals court has approved the three-year prison sentence handed down to Arman Rezakhani.

0515 GMT: As the 11th anniversary of the 1999 student protests approaches, there is talk of some public demonstration linking the past to the present challenge to the regime. For the moment, however, this is just a ripple. Monday's Mousavi-Khatami statement, from what we can gather, seems to have brought little reaction: the summary of the meeting is more a declaration of the "Iranian" legitimacy of the opposition's politics --- the most striking passage is the criticism of international sanctions and "Western" support for terrorism --- than a call for public resistance.

Protest, however, is never far from the surface, for Iran is far more than a Green v. Government scenario. International attention is riveted by the growing campaign to halt the stoning of Sakineh Mohammadie Ashtiani for adultery.

Inside Iran, the most striking result on Tuesday was the apparent success of merchants in the Tehran Bazaar. A sudden shut-down by some textile vendors --- there was also news of closures in the jewellry market --- seems to have brought a reversal of plans for a 70% increase in business tax.

On the labour front, the Tehran and Suburbs Bus Drivers Union has again strongly condemned the arrest and intimidation of members Saeed Torabian and Reza Shahabi.

And, far from least, the battle within continues. Later this morning we'll have an analysis of the latest "protest" of Ahmad Tavakoli --- key member of Parliament and ally of Speaker Ali Larijani --- against the Government and President Ahmadinejad.

Iran Document: The Mousavi-Khatami Meeting (5 July)

A summary of Monday's meeting between Mir Hossein Mousavi and former President Mohammad Khatami, from Khatami's website via Payvand:

[Mousavi and Khatami] stressed that 1) firm guarantees for the release of political prisoners, 2) the opening and normalization of the current restricted and security atmosphere, and 3) elimination of the obstacles facing the political and cultural activities of the various groups and parties that are in line with the true values of the Islamic Republic and in the framework of the Constitution, as well as holding free and fair elections, were the basic necessities to change the current crisis dominating the country.

Mousavi and Khatami condemned the new UN Security Council resolution and the imposition of new sanctions against Iran, calling this an action against the national security of Iran. They pointed to the concurrence of this resolution with the empowerment of the terrorist groups and their resumption of activities in the West, called it a new conspiracy against Iran. These terrorist groups have the blood of the innocent people of Iran on their hands and have no place among the nation and are a group of dead who have been buried in hatred in the minds of the Iranian people, although the official propaganda and psychological warfare inside the country have brought up their names once again after many years and given an illusion to these terrorists and their western supporters that they are still alive. These international actions that were supported by the big powers are being committed while the crimes of the government of Israel, which were against humanity, not only are not condemned but are being supported.

The former President [Khatami] and the Prime Minister during the Iran-Iraq war [Mousavi], while emphasizing that the great nation of Iran will not allow anyone or any power to interfere in its internal affairs, made it clear that any policy or provocative, unconsidered, or adventurous behavior by government officials that would give an excuse to damage the national security and interest of the country is not acceptable.

Expressing great sadness for the increase in pressures on the [Government's] critics, as well as the continuation of illegal actions and detentions and the increase in the waves of lies and false accusations against renowned figures devoted to the revolution's ideas and defenders of the people's demands and rights who want the prosperity of the country, Mir Hossein Mousavi and Seyyed Mohammad Khatami demanded the formation of a free and safe environment for the people,an atmosphere to criticise the government's policies and actions in economic, political, cultural, and foreign affairs, and the means for everyone's participation in the country's fate.

Condemning the spread of lies and unjustified accusations, Mir Hossein Mousavi and Seyyed Mohammad Khatami pointed out the extensive release of an audio file from several months ago ---- what was mentioned on it was undoubtedly unprecedented in the past thirty years and full of lies, insults and illusions. They called it, contrary to the intention of those who distributed it,  illuminating of many uncertainties in the events before and after the last presidential election and the corruptions surrounding it....

Seyyed Mohammad Khatami and Mir Hossein Mousavi considered the spread of this content, in the name of the decisions of "the establishment", sad and said the lack of confrontation--- against the spread of these illusions, lies, and confessed illegal actions and the collaboration of some official organizations and media with this group--- was shocking.

Khatami and Mousavi emphasised that all should be vigilant against internal and external conspiracies and threat. They should insist on rational demands and expectations  and moving forward within the boundaries of the Constitution. God willing, we will witness the return of everyone to the principles of the Islamic Revolution, the principles of the Constitution, and the high aspirations of the noble people of Iran.