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In Iran's first official reaction to Friday's attack, ministry spokesperson Nasser Kanaani said freedom of speech did not justify Rushdie's insults against religion.
While global stock markets were mixed following the US killing of Qasem Soleimani, oil prices jumped more than 3 per cent on Friday.
US President Donald Trump on Saturday threatened to hit 52 Iranian sites "very hard" if Iran attacks Americans or US assets.
Iranian Supreme Leader Ayatollah Ali Khamenei had vowed harsh vengeance against the US after commander Qasem Soleimani, the architect of Iran's spreading influence in the Middle East, was killed in an airstrike ordered by Donald Trump.
Under the newly adopted bill, all US forces and employees of the Pentagon and affiliated organisations, agents and commanders and those who ordered the 'martyrdom' of Soleimani were designated as 'terrorists'.
A procession in Tehran on Monday drew over 1 million people in the Iranian capital, crowding both main thoroughfares and side streets in Tehran.
came as tensions escalate between the two countries after the United States killed Iran's most prominent military commander, Qassem Soleimani, in Baghdad on Friday.
A majority of US airmen stationed at the Al-Balad airbase north of Baghdad had already left following tensions between the US and Iran over the last two weeks.
The official state broadcasters said on Sunday $1 would be tabled for every Iranian in the country, with the cash going to whoever killed the US President
Iran's Revolutionary Guards confirmed that they fired the rockets in retaliation for last week's killing of Qassem Soleimani.
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