Iran's spiritual leader Ayatollah Ali Khamenei has urged political factions to set aside their disputes and unite.

He said at Friday prayers in Tehran thatdifferences of opinion were acceptable, but not antagonism.

He also warned Iranian newspapers against taking advantage of existing freedoms to create tension, saying they must work to bring political factions closer together.

The Ayatollah's comments come against the background of a power struggle between Conservatives and moderates within the Iranian clerical regime.

Yesterday, the former mayor of Teheran, Gholam Hossein Karbaschi - a key supporter of the reformist President, Mohammed Khatami - had his conviction for embezzlement upheld but his jail sentence reduced.