Leading Iran reformist to run in 2009 presidency vote

TEHRAN (Reuters) - A leading Iranian reformist said on Sunday he would run in next year's presidential election, challenging conservative President Mahmoud Ahmadinejad who is widely expected to seek a second four-year term.

Former parliamentary speaker Mehdi Karoubi, the first major political figure to declare his candidacy, said he would contest the June 2009 vote for president in the world's fourth-largest oil producer.

"I announce that I'm a candidate for next year's election," the cleric told a news conference.

"In my opinion, both in foreign policy and economic issues, the government of Ahmadinejad has not been successful," he said.

Karoubi said earlier this year Iran should be ready for talks with its foes, particularly the United States. Washington and Tehran have not had diplomatic ties for almost three decades and are locked in conflict over Iran's nuclear program.

Reformists seeking political and social change have criticized Ahmadinejad, who came to power four years ago on a pledge to revive the values of the 1979 Islamic revolution, over his failure to rein in climbing double-digit inflation.

"Inflation is something people deal with from morning to night," Karoubi said.

They have also questioned the president's handling of the nuclear issue, saying his fiery speeches have riled the West, which has led efforts to impose U.N. sanctions. They say more diplomacy would have been better.

Western governments accuse Iran of seeking nuclear weapons, a charge Tehran denies. Iran says it wants to master nuclear technology so it can generate electricity and export more of its oil and gas.

But Ahmadinejad has won crucial backing from the Islamic Republic's highest authority, Supreme Leader Ayatollah Ali Khamenei, who has the final say on all matters of state.

Ahmadinejad's critics say he has helped to isolate Iran and expose it to three rounds of U.N. sanctions, but Khamenei has praised his uncompromising stance in the nuclear row.

Some analysts say Khamenei's support and the fact that Ahmadinejad is the incumbent make him the favorite to win the election, even though he has come under fire from MPs, the public and the media over rising inflation now at 29 percent.

Another leading reformist, former President Mohammad Khatami, has yet to say whether he will contest the race.

One Iranian analyst said he believed Karoubi's chances against Ahmadinejad depended on the backing of other reformist groups and whether Khatami decided to run.

"If all the reformist groups rally around Karoubi, yes, in that case he might have a chance," the analyst, who declined to be named, said.

(Additional reporting by Zahra Hosseinian; Writing by Fredrik Dahl; Editing by Peter Millership)