Iran says courts will teach protesters a lesson

By Zahra Hosseinian and Fredrik Dahl

TEHRAN (Reuters) - Iranian authorities said they would teach an exemplary lesson to "rioters" held in the worst unrest since the birth of the Islamic Republic, and accused Western powers on Tuesday of inciting the violence.

(EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on their ability to report, film or take pictures in Tehran.)

Riot police and Basij militia on Tehran's main squares warded off the mass protests that have marked the 11 days since disputed elections. Iran's hardline leadership appeared to have gained the ascendancy, at least for the moment.

The conflict, which has revealed unprecedented division in the religious leadership, began to play out on the diplomatic arena, with Britain so far bearing the brunt of Iran's anger.

But that was before President Barack Obama, whose comments on Iran had been highly restrained, on Tuesday said the United States was "appalled and outraged" by Iran's crackdown.

The United States would not interfere in the protests over Iran's contested election, and accusations it was instigating them were "patently false and absurd," Obama said.

"I strongly condemn these unjust actions, and I join with the American people in mourning each and every innocent life that is lost," he told a news conference.

"We must also bear witness to the courage and dignity of the Iranian people, and to a remarkable opening within Iranian society. And we deplore violence against innocent civilians anywhere that it takes place."

Iran's top legislative body, the Guardian Council, rejected demands for a vote rerun from former prime minister Mirhossein Mousavi, who says the election was rigged and he is the rightful victor, and pro-reform cleric Mehdi Karoubi.

EXTENSION GRANTED

But in an apparent concession, Supreme Leader Ali Khamenei, who holds all the key levers of power in Iran, accepted a request from the 12-man council for a five-day extension to the deadline for candidates to make complaints over the election.

The troubles have erupted against a background of tension between the West and Iran, a major oil and gas producer and pivotal factor in regional stability. Tehran's hardline leadership is locked in dispute with Western powers over its nuclear program, which it says is intended for generating electricity but which the West suspects could yield nuclear weapons that could destabilize the region.

London said two of its diplomats had been expelled from Iran and it had ordered out two Iranians in retaliation. About 100 hardliners gathered in front of the British embassy in Tehran, chanting "British embassy should be closed."

Supporters of hardline anti-Western President Mahmoud Ahmadinejad held a news conference in the building of the old U.S. embassy that was seized by students after the Islamic Revolution in 1979 and held with 52 U.S. hostages for 444 days.

"We don't need to have such useless relations with Britain," said one of the student leaders. "If Britain continues its interference...we will destroy their houses over their heads."