Eight Iranian employees of the British embassy in Tehran were arrested Sunday and stood accused of inciting unrest over the June 12 presidential election, reports the government-linked Fars news agency.
The president responded to critics who accused him of not condemning Iran's crackdown of pro-democracy protesters. But he also kept his options open.
The president's ties to military and security forces, as well as his hardline foreign policy, are among the factors cited for his support from the country's supreme leader.
The Revolutionary Guard vowed to stop the street demonstrations, causing some protesters to stay home. But others gathered Monday to honor the death of Neda Soltan.
Despite street violence on Saturday that officially claimed 13 lives, opposition leader Mir Hussein Mousavi again on Sunday called for the June 12 election results to be annulled.
Eyewitnesses say thousands of police and plainclothes militia members filled the streets to prevent rallies.
Ayatollah Khamenei to address huge prayer service Friday. Guardian Council meets Saturday to discuss election problems.