BBC: US Secretary of State Condoleezza Rice has described the actions of Iranian vessels which confronted the US Navy as provocative and dangerous.

Reuters: Iran on Monday confirmed there was an “incident” between Iranian and U.S. ships but gave no details, an Iranian news agency reported, after Washington said Iranian vessels threatened their ships in the Strait of Hormuz.

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.