Iranian President Mahmoud Ahmadinejad on Sunday sharply criticized the film mocking Islam that has sparked deadly anti-American protests in the Muslim world, but also called for restraint.
The gap between Israel and the United States on Iran widened Sunday as Benjamin Netanyahu insisted on a "red line" from Washington, claiming Tehran is "90 percent" toward having a nuclear bomb.
Iran's supreme leader, Ayatollah Ali Khamenei, on Thursday demanded the United States punish those behind an anti-Islam film blamed for sparking violent protests in the Middle East and North Africa.
President Barack Obama called Benjamin Netanyahu Tuesday after he provoked a sudden crisis in relations by warning Washington had no moral right to stop Israel attacking Iran's nuclear program.
Tensions between Israel and the United States over how to deal with Iran's nuclear program resurfaced Monday, as Washington rebuffed calls to set "red lines" for action.
Western countries will seek to turn the screw further on Iran at a meeting of UN atomic agency board of governors from Monday following the watchdog's latest damning report on Tehran's nuclear programme.
Iran hit out at Canada's decision to break off diplomatic ties, with foreign ministry spokesman Ramin Mehmanparast accusing the Canadian government of being "under the influence of the Zionist regime."
Israel's prime minister has accused the international community of failing to draw a "clear red line" for Iran over its nuclear programme, after a UN report found Tehran had doubled its capacity at a nuclear site.
Iran's hopes of boosting its international prestige by hosting a Non-Aligned summit this week were tripped up by a critical new UN nuclear watchdog report.
A new UN atomic agency report due Thursday or Friday is expected to detail how Iran is continuing to expand its nuclear programme despite painful sanctions and talk of Israeli military action.
Iran and the UN nuclear watchdog were due in talks Friday to make a fresh push to patch up relations as Tehran feels the heat from sanctions and amid fevered speculation of imminent Israeli military action.
Iraq insisted on Monday that its trade with neighbouring Iran was above board, and denied reports that it was helping the Islamic republic skirt sanctions by smuggling oil and secretly moving cash.
A high-volume public debate in Israel over a possible imminent military strike on Iran's nuclear facilities is designed to pressure Washington to back its ally more firmly.
Iranian President Mahmoud Ahmadinejad told an annual anti-Israel protest in Tehran on Friday that the Jewish state was a "cancerous tumour" that will soon be excised, drawing Western rebukes.
Standard Chartered on Tuesday settled allegations that it helped Iranian clients dodge US sanctions, announcing a fine of $340 million from a New York banking watchdog.
The 57-member OIC suspended Syria in a meeting attended by its staunch ally Iran, in a move hailed early Thursday by the United States as one that sends "a strong message" to Damascus.
An emergency summit of the 57-member Organisation of Islamic Cooperation (OIC) began late Tuesday with a proposal to suspend conflict-wracked Syria, a move strongly opposed by Iran.
Israel has not yet decided whether to strike Iran over its suspect nuclear program, US Defense Secretary Leon Panetta said Tuesday, as Tehran dismissed the threat of an imminent attack.