Iran 'taking control of Basra by stealth'

Iranian intelligence is preparing for complete dominance of southern Iraq when the British withdraw by penetrating Basra's security network and political parties, it can be revealed.

Iraqi intelligence sources disclosed to The Daily Telegraph that Iran plans to reap the huge financial rewards presented by the southern oil fields and prevent Western businesses from gaining a foothold inside Basra.

British and American political and military leaders are also concerned over Teheran "giving succour" to terrorists who continue to kill troops every week.

A senior American official, based in the British camp, who spoke on condition of anonymity, said there was deep concern over the "destabilising effect" Iran was having on the area. "The indications we are receiving is that the militia firing rockets into this compound are receiving support from Iranian factions," he said. "This is very troubling when we are trying to bring peace and stability."

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