Iran tensions add to global risk: ECB's Trichet

PARIS (Reuters) - Tensions in Iran have added to risks facing the world economy and underline the need for strengthening the global financial system, European Central Bank President Jean-Claude Trichet said on Sunday. "Any additional geo-strategic tension is obviously an extra risk for the international economy," he told Europe 1 radio. The unrest over Iran's disputed election could hurt investor confidence, he said.

"What's happened is very recent so there hasn't been any impact on the international economy yet but it's obviously a risk factor," Trichet said.

"You can talk about Iran as part of a wider analysis that would be associated with risks for the oil markets, not just because of Iran but because of the whole region," he added.

Trichet made his comments as Iranian state television reported that 10 people were killed and more than 100 injured during clashes on Saturday over a disputed election for president.

Trichet said the uncertainty underlined the need for the tighter controls agreed by countries in the Group of 20 rich and emerging nations.

"We have to live with these risks and reinforce the solidity of the international economy, reinforce the solidity of international finance and so I think it's an additional argument for moving quickly," he said.

"We shouldn't dramatise things. We should follow what is happening with a lot of attention, be as responsible as possible and reinforce the solidity of the international system."

(Reporting by James Mackenzie; Editing by Richard Balmforth)