Iran's president says there will be no room for Israel in the region after the formation of a Palestinian state.

PRO-GOVERNMENT militiamen attacked the home of an Iranian opposition leader with homemade bombs and beat one of his bodyguards unconscious, an opposition website reported, in an apparent attempt to keep him from attending a key rally yesterday.

Iran warned Israel today of retaliation against its nuclear facility if the Jewish state attacked Iranian nuclear sites.

Hard-liners have attacked senior pro-reform leaders in the streets of Tehran as tens of thousands marched in competing mass demonstrations organised by opposition and government supporters.

Thousands of Iranian anti-government protesters clashed with hard-liners on the streets of Tehran today as marches turned into running battles.