Ayatollah Ali Khamenei, Iran's supreme leader, has established a new body to supervise foreign policy in a move seen by some politicians in Tehran as a way to counterbalance the government of President Mahmoud Ahmadi-Nejad.

The move comes as Iran faces fresh pressure from US and European Union officials to respond quickly to an incentive package presented earlier this month by western powers. The package, drawn up by the five permanent members of the United Nations Security Council plus Germany, was crafted in an effort to persuade Tehran to limit its nuclear programme. Mr Ahmadi-Nejad said last week that Iran would respond to the package by August 22. However some US and EU officials want a much swifter response.