Iran supreme leader backs hike in petrol price as demonstration sparked

Claiming foreign enemies and opponents of the Islamic Republic guilty of sabotage the Iranian supreme leader, Ayatollah Ali Khamenei, blocked 50 per cent petrol price increase that have triggered protests across Iran.

Iranian parliamentarians also made moves to reverse the rise amid fears that the protests could spiral out of control, as they have earlier in Iraq and Lebanon.

Khamenei said on Sunday that some people are worried about this decision, but hooligans, not our people do sabotage and arson.

Adding further he said he doesn't know about the details regarding the hike in petrol price, but said it had been sanctioned by leading Iranian government bodies and experts.

More than a dozen cities the demonstration took place following Rouhani's decision on Friday midnight to cut subsidies to fund support for Iran's poor.

With prices jumping to a minimum of 15,000 rials per litre-50 % up petrol remains still the cheapest in the world.

Before February's parliamentary elections, the widespread anger among Iran's population of 80 million who have seen their job scarcity, savings evaporate and the collapse of national currency may represent as a political risk for the president Hassan Rouhani.

Iran is the world's fourth-largest crude oil reserves. While expected for months, the decision to raise petrol prices sparked demonstrations overnight.

According to officials on Saturday one person was killed in the southeastern city of Sirjan. Khamenei said that some problems occurred and several people lost their lives, and some centres destroyed too.

A local prosecutor stated that as many as 40 people were arrested in the protests so far in the central city Yazd, most of them were not residents.

Videos clips on social media showed riot, police firing, teargas and using clubs on Saturday to disperse demonstrators in several cities.