Philip Giraldi, who was a CIA counterterrorism official from 1976 to 1992, told IPS that intelligence sources say that the United States had nothing to do with forging the document, and that Israel is the primary suspect. The sources do not rule out a British role in the fabrication, however.

The Times of London story published Dec. 14 did not identify the source of the document. But it quoted “an Asian intelligence source” - a term some news media have used for Israeli intelligence officials - as confirming that his government believes Iran was working on a neutron initiator as recently as 2007.

The story of the purported Iranian document prompted a new round of expressions of U.S. and European support for tougher sanctions against Iran and reminders of Israel’s threats to attack Iranian nuclear programme targets if diplomacy fails.

U.S. news media reporting has left the impression that U.S. intelligence analysts have not made up their mind about the document’s authenticity, although it has been widely reported that they have now had a full year to assess the issue.

Giraldi’s intelligence sources did not reveal all the reasons that led analysts to conclude that the purported Iran document had been fabricated by a foreign intelligence agency. But their suspicions of fraud were prompted in part by the source of the story, according to Giraldi.

“The Rupert Murdoch chain has been used extensively to publish false intelligence from the Israelis and occasionally from the British government,” Giraldi said.

Some accounts of the violence in Tehran were vivid and detailed, but they could not be independently confirmed because of government restrictions on media coverage. Police, who denied using firearms, said dozens of officers were injured and more than 300 protesters were arrested.

The dead included a nephew of opposition leader Mir Hossein Mousavi, according to Mousavi’s Web site, Kaleme.ir. The clashes were sure to deepen antagonism between the government and a reform movement that has shown resilience in the face of repeated crackdowns.

Clashes were reported between the opposition protestors and supporters of President Mahmud Ahmadinejad, backed by police and Basij militia vigilantes. It is not yet known how many protesters were arrested.

Ayatollah Ali Khamenei, who backs the re-election of President Ahmadinejad, is due to speak at Friday prayers.

The authorities have been laying on bus services and urging people to come to hear Mr Khamenei speak.

Correspondents say the amount of people the ayatollah can rally will be as closely watched as what he says.

The ayatollah’s address follows days of rallies by backers of presidential rival Mir Hossein Mousavi, who believe the vote was fixed.

The Obama Administration is pushing for a comprehensive peace agreement that would include settling Israel’s conflict with the Palestinians and its territorial disputes with Syria and Lebanon, King Abdullah II told The Times. Failure to reach agreement at this critical juncture would draw the world into a new Middle East war next year. “If we delay our peace negotiations, then there is going to be another conflict between Arabs or Muslims and Israel in the next 12-18 months,” the King said.

Details of the plan are likely to be thrashed out in a series of diplomatic moves this month. Chief among them is President Obama’s meeting with Binyamin Netanyahu, the right-wing Israeli Prime Minister, in Washington a week today. The initiative could form the centrepiece for Mr Obama’s much-anticipated address to the Muslim world in Cairo on June 4. A peace conference could then take place involving all the parties as early as July or August. Such an ambitious project has not been attempted since 1991, when George Bush senior’s Administration assembled all the parties for a peace conference in Madrid.