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Iranian-backed militia groups take control of much of southern Iraq

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Knight Ridder Newspapers: Southern Iraq, long touted as a peaceful region that’s likely to be among the first areas returned to Iraqi control, is now dominated by Shiite Muslim warlords and militiamen who are laying the groundwork for an Islamic fundamentalist government, say senior British and Iraqi officials in the area.

Officials: Greece conveying Tehran messages

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AP: Iran has turned to Greece to convey messages to the United States regarding its contentious nuclear program and other disputes, officials said Friday.

Warning reported on World Cup threat

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UPI: Israel has warned European and U.S. intelligence services of possible terrorist attacks sponsored by Iran during the World Cup, a Saudi newspaper reports.

Oil wealth, but slow progress on reform

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The Times: Iran has enjoyed a boom in recent years, making it one of the best-performing economies in the Middle East and North Africa region, as a surge in world oil prices has allowed it to capitalise on its resource wealth.

U.S. is debating talks with Iran on nuclear issue

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New York Times: The Bush administration is beginning to debate whether to set aside a longstanding policy taboo and open direct talks with Iran, to help avert a crisis over Tehran’s suspected nuclear weapons program, European officials and Americans close to the administration said Friday.

American pressure threatens UK firms

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The Times: The US Government is putting Britain’s £1 billion annual trade with Iran at risk by pressing European banks to withdraw from the country, The Times has learnt.

Russia to honour Iran arms deal

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BBC: Russia’s defence minister has confirmed that Moscow intends to honour a controversial deal to supply Iran with surface-to-air missiles.

Iran FM threatens retaliation in event of US strike

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AFP: Iran will retaliate in the event of a US strike, Foreign Minister Manouchehr Mottaki warned Friday during a visit to neighbouring Iraq where some 130,000 US troops are based.

Nuclear capability gives Iran status of world power

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Iran Focus: Tehran, Iran, May 26 – Obtaining nuclear capabilities has transformed Iran into a world power, hard-line Iranian President Mahmoud Ahmadinejad said. His comments were reported by the official news agency on Thursday.

Nuclear capability gives Iran status of world power

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Iran Focus: Tehran, Iran, May 26 – Obtaining nuclear capabilities has transformed Iran into a world power, hard-line Iranian President Mahmoud Ahmadinejad said. His comments were reported by the official news agency on Thursday.