ABC News Australia reports:

The US military says its soldiers have found rocket launchers armed with dozens of Iranian-made missiles aimed at one of its bases south of Baghdad.

“After several rockets hit FOB [Forward Operating Base] Hammer on July 11, the Third Heavy Brigade Combat Team manoeuvred to find the source of the attack,” a military statement said.

The next morning an unmanned aerial vehicle located 46 rocket launchers in the northern section of Besmaya Range Complex aimed at FOB Hammer.

Thirty-four of the launchers were armed with Iranian 107 millimetre rockets.

The US army believes the other 12 rockets were launched at the base the day before, killing one US soldier.

These would be the B-12, known to have been previously supplied by Iran to Hezbollah, a 107mm, 42 pound (19 kg.), 33 inch (838mm) long, Russian designed rocket very popular with terrorists. This rocket has a range of about six kilometers and three pounds (1.4 kg) of explosives in its warhead. Normally fired, from a launcher, in salvoes of dozens at a time, when used individually, it is more accurate the closer it is to the target. This 107mm design has been copied by many nations, and is very popular with guerillas and terrorists because of its small size and portability.

Israel News:

Iraqi general, Ali Reza Asgari, who disappeared in Istanbul last February, has defected and is being held by the United States, Yedioth Ahronot published Sunday.

Asgari was considered by the US one of the top intelligence officials in Iran.

His defection was made possible thanks to an intricate CIA (Central Intelligence Agency) operation, climaxing in him joining Western intelligence officers in Istanbul, who than had him and his family transferred to the US.

Asgari, who according to reports is being held in a top-secret military installation, has been able to shed a new light on much of the Iranian regime’s most inner workings, especially regarding the Iranian nuclear development project.

Up until now, Iran – according to known intelligence – has been building two nuclear plants, in Arak and Bushehr, and has been using centrifuges to enrich uranium.

Iran, Asgari told his interrogator’s is working in another, stealth path, toward achieving its nuclear goal.

This third method involves attempts to enrich uranium by using laser beams along with certain chemicals designed to enhance the process. These trials are held in a special weapons facility in Natanz.

Iran, said Asgari, is making special efforts to hide this path from the West, keeping it as a fallback in case international sanctions or a military strike should shut down or destroy the existing plants. …

The fact the Iranians are trying to find new ways to enrich uranium is not new onto itself, but the progress made, at least according to the information given by Asgari, is much greater than was suspected.

Unnamed officials made new charges against Iran to the Financial Times.

Evidence that Iranian territory is being used as a base by al-Qaeda to help in terrorist operations in Iraq and elsewhere is growing, say western officials.

It is not clear how much the al-Qaeda operation, described by one official as a money and communications hub, is being tolerated or encouraged by the Iranian government, they said.

The group’s operatives, who link the al-Qaeda leadership in Pakistan with their disciples in Iraq, the Levant and North Africa, move with relative freedom in the country, they said.

The officials said the creation of some kind of al-Qaeda hub in Iran appears to be separate from the group of seven senior al-Qaeda figures, including Saad bin Laden, son of the group’s figurehead, that Iran is said to have detained since 2002.

Bill Roggio discussed the reasons for believing that the January 20th Karbala attack was an Iranian operation a week after the event.

ِAn official US release of evidence against Iran was promised January 29, then put on hold two days later.

Now, six months later, the US military has finally decided to confirm Iran’s role.

AP:

Iran’s elite Quds force helped militants carry out a January attack in Karbala that killed five Americans, a U.S. general said Monday. U.S. military spokesman Brig. Gen. Kevin J. Bergner also accused Tehran of using the Lebanese Shiite militia Hezbollah as a “proxy” to arm Shiite militants in Iraq.

The claims were an escalation in U.S. accusations that Iran is fueling Iraq’s violence, which Tehran has denied, and were the first time the U.S. military has said Hezbollah has a direct role.

A senior Lebanese Hezbollah operative, Ali Mussa Dakdouk, was captured March 20 in southern Iraq, Bergner said. Dakdouk served for 24 years in Hezbollah and was “working in Iraq as a surrogate for the Iranian Quds Force,” Bergner said.

The general also said that Dakdouk was a liaison between the Iranians and a breakaway Shiite group led by Qais al-Kazaali, a former spokesman for cleric Muqtada al-Sadr. Bergner said al-Kazaali’s group carried out the January attack against a provincial government building in Karbala and that the Iranians assisted in preparations. Al-Khazaali and his brother Ali al-Khazaali were captured with Dakdouk.

Dakdouk told U.S. interrogators that the Karbala attackers “could not have conducted this complex operation without the support and direction of the Quds force,” Bergner said.

Documents captured with al-Khazaali showed that the Quds Force had developed detailed information on the U.S. position at the government building, “regarding our soldiers’ activities, shift changes and defenses, and this information was shared with the attackers,” Bergner said.

The Karbala attack was one of the boldest and most sophisticated against U.S. forces in four years of fighting in Iraq, and U.S. officials at the time suggested Iran may have had a role in it.

In the assault, up to a dozen gunmen posed as an American security team, with U.S. military combat fatigues, allowing them to pass checkpoints into the government compound, where they launched the attack. One U.S. soldier was killed in the initial assault, and the militants abducted four others who were later found shot to death.

As the mullah’s regime approaches nearer and nearer to open war with the West, the impact of UN sanctions is producing domestic unrest.

Blooomberg:

Iranians rioted in the streets of Tehran after the government imposed rationing of gasoline, which the country spends $5 billion a year to import.

Starting today, drivers will be allowed 100 liters, or about 26 gallons, of gasoline a month, Oil Minister Kazem Vaziri-Hamaneh said on state television. Taxis will get 800 liters. Lawmakers said earlier this month drivers would probably get five or six liters a day, 50 percent more than the program actually grants them.

“At least” five filling stations in Tehran were burned and damaged following the announcement, Nasser Raissi-Far, the head of Tehran province’s filling station union, told state-run Mehr news.

Although Iran holds the world’s second-biggest energy reserves, it imports more than 40 percent of the gasoline it uses. Demand is buoyed by subsidies while supply is restricted by waste and lack of refinery capacity. Service stations in Iran sell the fuel at 1,000 Iranian rials a liter, about 42 U.S. cents a gallon.

The dependence on imports makes Iran vulnerable to United Nations economic sanctions, which are likely to increase in coming months if it refuses to suspend uranium enrichment. Since December, the UN Security Council has limited the transfer of nuclear technology and the international travel of some Iranian officials.

PJM has video.

Depkafile has a followup on yesterday’s Sun story.

Early this week, Tehran deployed in southern Iraq and southern Iran contingents of Revolutionary Guards Corps of suicide fighters in anticipation of an American attack on Iranian soil.

Those units were posted to fight off a possible US Marines landing in southern Iran. Tehran believes the American force will be assigned with destroying RG bases and infrastructure in the south and sabotaging the oil wells and installations of Iranian province of Khuzestan.

The RG fighters were dropped by helicopter in southern Iraq on June 24 and 25. Their task will be to launch suicide attacks on US and British bases and command posts in the region the moment Iran comes under American attack.

Also in anticipation of a showdown, Tehran announced Tuesday at only two hours notice the rationing of gas for Iran’s private motorists to 100 liters per month. Protesters started torching gas stations Wednesday.

For lack of refining capacity, the oil-rich country imports 40% of its gasoline needs and oil products. Tehran sharply reined in private consumption to free up reserves for the armed forces in case of war and keep power stations and water supplies running in an emergency.

DEBKAfile’s military sources report that these two steps in three days attest to the certainty of Iran’s government and military that a military confrontation with the US is around the corner.

The British Sun newspaper first disclosed the Iranian troop thrust into southern Iraq Monday, June 25, reporting: “It is an extremely alarming development and raises the stakes considerably. In effect, it means we are in a full war with Iran – but nobody has officially declared it.”

DEBKAfile’s military experts add: In effect, the Iranian military incursion of Iraq is the fourth military invasion of foreign territory underway in the Middle East at this very moment. None are officially admitted.

The Sun is reporting:

Iranian forces are being choppered over the Iraqi border to bomb Our Boys, intelligence chiefs say.

Military experts claim this worrying move means we are at WAR with Iran in all but name.

Last night an intelligence source told The Sun: “It is an extremely alarming development and raises the stakes considerably. In effect, it means we are in a full on war with Iran — but nobody has officially declared it.

“We have hard proof that the Iranian Revolutionary Guard Corps have crossed the border to attack us.

“It is very hard for us to strike back. All we can do is try to defend ourselves. We are badly on the back foot.”

Our Boys picked up the Iranian helicopters on radar crossing into empty desert.

The sightings have been confirmed to The Sun by very senior military sources.

Depkafile reports (in non-linkable marquee’ing banner text):

British military source in Basra: We see the Iranians and their helicopters but are under strength to stop them.

But it looks like the Brits won’t be understrength to stop them much longer.

Depkafile also is reporting that third US carrier group, the Enterprise, is approaching the Arabian Gulf:

According to DEBKAfile’s military sources, the US naval build-up off the shores of Iran marks rising military tensions in the region. …

The USS Enterprise CVN 65-Big E Strike Group will join the USS Stennis and the USS Nimitz carriers, building up the largest sea, air, marine concentration the United States has ever deployed opposite Iran. This goes towards making good on the assurances of four carriers US Vice President Dick Cheney offered the Gulf and Middle East nations during his May tour of the region.

The “Big E” leads a strike group consisting of the guided-missile destroyers USS Arleigh Burke DDG 51, USS Stout DDG 55, Forrest Sherman DDG 98 and USS James E. Williams DDG 95, as well as the guided missile cruiser USS Gettysburg CG 64, the SS Philadelphia SSN 690 nuclear submarine and the USNS Supply T-AOE 6>

On its decks are the Carrier Air Wing CVW 1, whose pilots fought combat missions in the Gulf and Arabian Sea during 2006. The Air Wing is made up of F/Q-18 Super Hornet strike craft, the Sidewinders Strike Fighter Squadron VFA-86, the 251st Marine Fighter Attack Squadron MFA, and the Electronic Attack Squadron VAQ 137.

The 32nd Sea Control Squadron VS consists of S-3B Vikings. The Airborne Early Warning Squadron VAQ 3 flies E-2C Hawkeye craft. The Fleet Logistics Support Squadron VRC is based on C-2A Greyhounds.

Back on February 13th, the Telegraph (CY refers to March 12th, presumably via a typo) reported that more than a 100 Steyr Mannlicher HS50 .50 caliber sniper rifles sold to Iran had been captured by US forces in raids on insurgent arms caches and safe houses.

The story was widely repeated by media outlets and blogs, and obviously did considerable harm to the public image and reputation of the renowned Austrian arm maker.

Steyr Mannlicher issued a rebuttal on March 29th, which I unfortunately have not previously seen.

But Confederate Yankee more recently looked into the matter, interviewing informed US military sources, and has debunked the story completely.

Personally, I’m delighted to learn that the history of the company succeeding as manufacturer of the illustrious Mannlicher Schonauer remains unblemished, and that we Americans can buy Jeff Cooper-designed Steyr Scout rifles anytime we want without a qualm.

Never Yet Melted extends apologies and best wishes to Steyr Mannlicher GmbH. & Co KG

and to

Ferdinand Ritter von Mannlicher.

Original erroneous post

ABC News:

NATO officials say they have caught Iran red-handed, shipping heavy arms, C4 explosives and advanced roadside bombs to the Taliban for use against NATO forces, in what the officials say is a dramatic escalation of Iran’s proxy war against the United States and Great Britain. …

The coalition analysis says munitions recovered in two Iranian convoys, on April 11 and May 3, had “clear indications that they originated in Iran. Some were identical to Iranian supplied goods previously discovered in Iraq.”

The April convoy was tracked from Iran into Helmand province and led a fierce firefight that destroyed one vehicle, according to the official analysis. A second vehicle was reportedly found to contain small arms ammunition, mortar rounds and more than 650 pounds of C4 demolition charges.

A second convoy of two vehicles was spotted on May 3 and led to the capture of five occupants and the seizure of RPG-7mm rockets and more than 1,000 pounds of C4, the analysis says.

Also among the munitions are components for the lethal EFPs, or explosive formed projectiles, the roadside bombs that U.S. officials say Iran has provided to Iraqi insurgents with deadly results.

Supplying arms to our adversaries to be used against American and British forces is obviously an act of war. But if the Bush administration did what it ought to do and took military action against the odious fundamentalist Islamic Iranian regime, what would be the domestic American reaction?

The left would say very much what Mr. M says here:

My official reaction: Aw crap.

You’ll have to forgive my cynicism here, first, because to me this has an awful lot of Iraq flavor to it with a hint of “Meeting with al Qaeda in Prague,” and just a touch of yellowcake. Which just goes to show that hte whole story of the boy who cried wolf might just have a bit of truth to it.

In the worst case scenario where this is true… uh-oh. …

We caught them red handed, we must bomb them. John McCain can provide the soundtrack.

But let’s remember something folks. Good things take time. Really really crappy things are rushed, and I implore everyone to read this story with a dose of judicious caution because we have heard this story before. On the surface it doesn’t make sense, Iran is Shi’a, Taliban Sunni, and we have seen how well they play together.

This is reminiscent of the old OBL Saddam Hussein meme. Ooh, their in bed together except, they weren’t, and no sane thinking mind would think that considering that Saddam was a secularist, and bin Laden ran al Qaeda are hardcore extreme fundamentalists.

We must not jump the gun and consider this another reason to leap to war. First the report must be verified and vetted. Second, we must stop a second and look at what is going on. Is this a sign to make war, or is this yet another sign on the road saying we have already gone way too far.

The left has its talking points already prepared: the administration is lying, Iran is innocent and no threat; or, on the other hand, if Iran is a threat, that’s really terrifying, and we better retreat.

Reva Bhalla, director of geopolitical analysis at Stratfor, offers the perspective of a dove and insider on the recent US-Iran talks.

Pat Dollard, however, takes a considerably more hawkish perspective in interpreting exactly what brought Iran to the negotiating table.

Watching the pundits discuss our historic meeting with Iran, you would have mostly heard despair at the notion that we have no leverage in these talks, and so therefor why would Iran give on anything? Why would they stop waging war against us in iraq if they have nothing to fear? To all the experts in the media, the whole thing seemed like some grand puzzlement. Was it just an attempt to appease the administration’s domestic critics who have been chiding it for not engaging in diplomacy ( a vaguery if there ever was one ) with the world’s top terrorist? No one you heard from could really quite grasp what was going on.

For some reason, no one told you that just 5 days before Monday’s talks, an entire floating army, with nearly 20,000 men, comprising the world’s largest naval strike force, led by the USS Nimitz and the USS Stennis, and also comprising the largest U.S. Naval armada in the Persian Gulf since 2003, came floating up unnanounced through the Straight of Hormuz, and rested right on Iran’s back doorstep, guns pointed at them. The demonstration of leverage was clear. And it also came on the exact date of the expiration of the 60 day grace period the U.N. had granted Iran.

And it came just a few weeks after Vice President Dick Cheney had swept through the region and delivered a very clear and pointed message to the Saudi King Abdullah and others: George Bush has unequivocally decided to attack Iran’s nuclear, military and economic infrastructure if they do not abandon their drive for military nuclear capability. Plain and simple. Iran heard the message as well, and although a lack of leverage may seem clear to America’s retired military tv talking heads, it is not so clear to the government in Tehran.

The message to both Iran and Syria is that if the talks in Baghdad fail, the military option is ready to go.

The US warships entering

Arabian Sea

3:56 video – A very impressive sight.

Hat tip to Charles Johnson.

ABC News:

The CIA has received secret presidential approval to mount a covert “black” operation to destabilize the Iranian government, current and former officials in the intelligence community tell the Blotter on ABCNews.com.

The sources, who spoke on the condition of anonymity because of the sensitive nature of the subject, say President Bush has signed a “nonlethal presidential finding” that puts into motion a CIA plan that reportedly includes a coordinated campaign of propaganda, disinformation and manipulation of Iran’s currency and international financial transactions.

How can the publication of this kind of story in time of war not be vigorously prosecuted by the Department of Justice?

You don’t find the MSM reporting on the organized activities of retired and actively serving Intelligence officers, including ABC’s informants on this matter, to mount a covert “black” operation to destabilize the Bush Administration though, do you?

Unidentified “US officials” leak to Britain’s Guardian.

Iran is secretly forging ties with al-Qaida elements and Sunni Arab militias in Iraq in preparation for a summer showdown with coalition forces intended to tip a wavering US Congress into voting for full military withdrawal, US officials say.

“Iran is fighting a proxy war in Iraq and it’s a very dangerous course for them to be following. They are already committing daily acts of war against US and British forces,” a senior US official in Baghdad warned. “They [Iran] are behind a lot of high-profile attacks meant to undermine US will and British will, such as the rocket attacks on Basra palace and the Green Zone [in Baghdad]. The attacks are directed by the Revolutionary Guard who are connected right to the top [of the Iranian government]. …

US officials now say they have firm evidence that Tehran has switched tack as it senses a chance of victory in Iraq. In a parallel development, they say they also have proof that Iran has reversed its previous policy in Afghanistan and is now supporting and supplying the Taliban’s campaign against US, British and other Nato forces.

Tehran’s strategy to discredit the US surge and foment a decisive congressional revolt against Mr Bush is national in scope and not confined to the Shia south, its traditional sphere of influence, the senior official in Baghdad said. It included stepped-up coordination with Shia militias such as Moqtada al-Sadr’s Jaish al-Mahdi as well as Syrian-backed Sunni Arab groups and al-Qaida in Mesopotamia, he added. Iran was also expanding contacts across the board with paramilitary forces and political groups, including Kurdish parties such as the PUK, a US ally.