The US has accused Iranian government agents of plotting to assassinate the Saudi ambassador, immediately using the thwarted plot to step up sanctions and recruit international allies in a bid to further isolate Tehran.

AGENTS of the Iranian government were last night accused of being involved in a plot to assassinate the Saudi ambassador to the United States, with help from a purported member of a Mexican drug cartel.

Syrian security forces kept up a violent crackdown on dissent today as the embattled regime faced surprising calls to end the violence from its closest ally, Iran.

Iran faced more world condemnation today after parliament backed the Cabinet appointment of a man wanted for the bombing of a Jewish centre in Argentina.

Iran’s conservative-dominated parliament approved most of President Mahmoud Ahamedinejad’s choices for key Cabinet posts today, including endorsing the defence minister nominee who is wanted by Argentina for a deadly 1994 bombing of a Jewish cultural centre.

THE United States yesterday ratcheted up tensions over Iran’s nuclear drive and alleged backing for terrorism with a raft of new sanctions targeting the Islamic republic’s military and banks.

The US imposed new sanctions against Iran’s defence ministry, its Revolutionary Guard Corps and a number of banks today.

US forces backed by attack aircraft killed at least 25 suspected Shiite militia fighters north of Baghdad today as they targeted a cell accused of smuggling weapons from Iran.

A suicide driver killed three Iraqi policemen and wounded 20 people when he detonated his car at the entrance of police headquarters in Basra today.

A top American commander on Friday accused Iran of supplying powerful roadside bombs to militants in Afghanistan and said the US would “act decisively” if the cross-border flow continues.

A roadside bomb rocked an eastern Baghdad Shiite neighbourhood this morning, killing at least 13 people and injuring 25 others when it exploded next to buses used by morning commuters, police and hospital officials said.

A roadside bomb rocked an eastern Baghdad Shiite neighbourhood early today, killing at least 11 people and injuring 19 others when it exploded next to buses used by morning commuters.

The United States and Iran are to hold ambassador-level talks in Baghdad regarding the deteriorating security situation in Iraq.

US troops battled Iraqi police suspected of links to Iranian-backed Shiite militiamen today, killing six.

Five of Iran's officials held by the US in Iraq have complained about their treatment in detention, Iran's foreign ministry spokesman said today.

Iran says it has uncovered spy rings organised by the United States and its Western allies, claiming on state-run television that the espionage networks were made up of “infiltrating elements from the Iraqi occupiers”.

The sudden release of an Iranian diplomat missing for two months in Iraq raised new hope today that 15 British sailors and marines seized by Iran may soon be freed.