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Supreme Leader Ayatollah Ali Khamenei said on Wednesday Iran's establishment would not yield to pressure over the disputed presidential election as tension rose with the Islamic Republic considering a downgrade of ties with Britain and accusing the CIA of funding "rioters.

Iran's intelligence minister Gholamhossein Mohseni-Ejei said some people with British passports were involved in post-election violence, the semi-official Fars News Agency reported.

"Many of the rioters were in contact with America, CIA and the MKO and are being fed by their financial resources," he said. The MKO (Mujahideen Khalq Organisation) is an exiled Iranian opposition group.