Khamenei vows no retreat on Iran election result

By Zahra Hosseinian and Hossein Jaseb

TEHRAN (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei declared on Wednesday that a disputed election result would stand, despite street protests that Iranian officials say Britain and the United States have incited.

The opposition refused to be bowed. Reformist cleric Mehdi Karoubi, who came last in the June 12 presidential election, called the new government "illegitimate" and around 200 protesters braved the security crackdown near parliament.

Riot police later used teargas to break up the protest.

Police and militia have largely succeeded in taking back control of the streets this week after the biggest anti-government protests since the 1979 Islamic revolution. The hardline leadership is refusing to give ground.

"I had insisted and will insist on implementing the law on the election issue," said Khamenei, the most powerful figure in Iran. "Neither the establishment nor the nation will yield to pressure at any cost."

Iran is blaming the discontent on foreign powers.

"Britain, America and the Zionist regime (Israel) were behind the recent unrest in Tehran," Interior Minister Sadeq Mahsouli said, according to the semi-official Fars news agency.

Foreign Minister Manouchehr Mottaki said Iran was weighing whether to downgrade ties with Britain after each country expelled two diplomats this week. He also announced he had "no plans" to attend a G8 meeting in Italy this week on Afghanistan.