UPI:The Iranian air force has launched a large military exercise dubbed "Thunder 88" over its regional waters, official media indicated Monday.

Wall Street Journal: A homemade bomb found aboard an Iranian plane Sunday follows a string of incidents in Iran that are raising concerns about rising sectarian violence between Sunnis and Shiites ahead of the June 12th presidential election.

AFP: Iranian police have arrested a group of people accused of instigating sectarian violence in the restive southeastern city of Zahedan, a senior police chief was quoted as saying.

AP: Iranian President Mahmoud Ahmadinejad threatened Sunday to release internal documents on government affairs going back to the early 1980s in a direct counterattack against challengers who claim his policies have sent Iran into an economic tailspin and undermined the nation's standing in the world.

Christian Science Monitor: As the US and Asian neighbors of North Korea mull a united response to block the communist nation's nuclear program following a recent test, Israel is bracing for the fallout.

Reuters: Iran plans to issue foreign currency and rial-denominated bonds for a total of $12.3 billion over the next three years to help finance the development of its South Pars natural gas field, a state firm said on Sunday.

AP: Egypt does not agree with Israel's point of view that Iran's nuclear ambitions are a higher priority for the region than Mideast peace, the presidential spokesman said Sunday.

AFP: Iranian security officials defused a bomb planted on a domestic passenger plane, officials said on Sunday, the latest incident of violence in the run-up to the June 12 presidential election.

AP: A moderate think tank led by Iran's former top nuclear negotiator accused President Mahmoud Ahmadinejad of distorting facts about the country's nuclear program to depict himself as a hero and improve his chances in the upcoming election.