Iran executes 'CIA spy' amid Gulf tensions

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"Today, the situation in the region is to Iran's advantage".

"Any mistake by Iran's enemies, in particular America and its regional allies, would be like firing at a powder keg that will burn America, its interests and its allies to the ground", the senior spokesman of Iran's Armed Forces, Abolfazl Shekarchi, said.

Tensions between Washington and Tehran flared up after Iran, on Tuesday, said it shot down a United States "spy" drone which violated its airspace - a claim the U.S. denies - near the strategic Strait of Hormuz.

Despite US claims that the drone had been flying over global waters, Iran says it has retrieved fragments of drone in its own territorial waters where it was shot down.

US President Trump announced additional sanctions on Iran, but held out the prospect of a deal.

According to a US official who spoke to the AP, the military strikes halted by Trump were recommended by the Pentagon and were among the options presented to senior administration officials.

Iran has executed a former contract employee for the aerospace organisation of the defence ministry on charges of spying for the US Central Intelligence Agency, it has been reported.

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It said he had been executed at the Rajai Shahr prison in Karaj, west of Tehran, without providing further details.

In a June 21 statement, Iran's Foreign Ministry said that "even some parts of the drone's wreckage have been retrieved from Iran's territorial waters".

Meanwhile, US Pesident Donald Trump has said that he did not want war but warned Iran that it would face "obliteration" if conflict broke out.

But critics say his policy of "maximum pressure" - including abandonment of an worldwide deal to regulate Iran's nuclear activities, economic sanctions and deployment of extra troops to the region - make war ever more likely.

On Saturday, the Department of Homeland Security issued a warning to American industries that Iran has stepped up its cyber-targeting of critical industries, including oil, gas and other energy sectors, and government agencies, and has the potential to disrupt or destroy systems.

Iran's foreign ministry spokesman Abbas Mousavi retorted that United States "diplomacy" towards Tehran was "years of #EconomicTerrorism & war, and violating commitments".

The attack crippled computers used to control rocket and missile launches, according to the Post, while Yahoo News said a spying group responsible for tracking ships in the Gulf was also targeted.