Israel engaged in covert war inside Iran: report

Meir Javendafar, an Iran expert at Meepas, a Middle East analysis group, told Reuters there were also reports Iran was being sold faulty equipment for its nuclear program, and that there were attempts to disrupt the electricity supply to Natanz, a uranium enrichment facility in central Iran.

"I think there is sabotage going on. It's a logical move and it makes sense in the game that is part of the overall struggle to disrupt Iran's nuclear ambitions," he said.

As evidence of Israel's reported strategy, Iran watchers have pointed to events such as the death of Ardeshire Hassanpour, a nuclear scientist at the Isfahan uranium plant who died at home from apparent gas poisoning in 2007.

The former CIA agent told the Telegraph: "Disruption is designed to slow progress on the program, done in such a way they don't realize what's happening. The goal is delay, delay, delay until you can come up with some other solution.

"It's a good policy, short of taking them out militarily, which probably carries unacceptable risks."

Asked about the newspaper report, Mark Regev, a spokesman for Israeli Prime Minister Ehud Olmert, told Reuters: "It is not our practice to comment publicly about these sorts of allegations, not in this situation, not in any situation."