Reuters: Iran’s president proposed a bigger budget for 2008-09 to parliament on Monday that he said would promote social equality but critics fear will further stoke double-digit inflation in OPEC’s second biggest producer.

Reuters: Five Iranian boats made aggressive maneuvers and showed hostile intent against three U.S. Navy ships at the weekend in the Strait of Hormuz, a major oil shipping route in the Gulf, the Pentagon said on Monday.

AP: In what U.S. officials called a serious provocation, Iranian boats harassed and provoked three U.S. Navy ships in the strategic Strait of Hormuz, threatening to explode the American vessels.

Washington Post: President Bush intends to use his first extended tour of the Middle East to rally support for international pressure against Iran, even as a recent U.S. intelligence report playing down Tehran’s nuclear ambitions has left Israeli and Arab leaders rethinking their own approach toward Iran and questioning Washington’s resolve, according to senior U.S. officials, diplomats and regional experts.

Washington Times: President Bush will be following in some unlikely footsteps on his eight-day, seven-stop Mideast tour that starts tomorrow.

Reuters: Some of the heaviest snowfalls in years caused severe transport disruptions in Iran on Sunday, forcing the cancellation of most flights and the closure of many roads, Iranian media said.

AFP: US President George W. Bush said Washington would defend its close ally Israel in the event of an Iranian attack, in remarks broadcast on Israeli army radio on Sunday.