Arias Caught Lying to Cops in Recorded Phone Calls

Jodi Arias blatantly lied to police who asked her about Travis Alexander's death, telling them in recorded phone calls that she kept trying to call and message Alexander the week of his death but never heard back from him.

The phone calls were played as evidence during the fourth day of Arias' trial, in which she is charged with murder and could face the death penalty if convicted of killing Alexander in a "depraved and heinous" way. Arias has admitted to killing her former boyfriend, but claims it was self-defense.

During the phone conversations played in court, Arias can be heard telling Mesa, Ariz., detective Esteban Flores that she last talked to Alexander on Tuesday night, June 3, 2008, around 10 p.m. She had been in Los Angeles, about to leave to go to Utah to visit a new love interest, she said.

After June 3, he stopped calling her back, she said.

Photos of Key Players and Evidence in the Jodi Arias Murder Trial

"On Tuesday night (I talked to him), it was brief though, 10 o'clock maybe. I'd say 10 p.m. or 9 - 9:30. I was calling people because I was bored on the road. He was nice and cordial, but kind of acting like he had hurt feelings," she said.

"I may have called him Wednesday, from the road, and I sent him a couple of text messages, and a couple of pictures," she said, though Alexander didn't pick up and his voice mailbox was full. "That's unusual. He deletes all of his messages. I didn't want to be obsessive about it because we're not together anymore and I didn't like to call too much."

According to court records, Arias, 32, actually went to Alexander's home on in Mesa on Wednesday morning. There, the pair had sex and took graphic photos of one another with Alexander's camera.

Then, Arias is believed to have killed Alexander, 30, in his shower by stabbing him, slashing his throat from ear to ear, and shooting him in the head.

In the phone conversations, Arias told Flores that she considered calling Alexander's friends when he stopped returning her calls on Wednesday, but didn't want to act like "his mother."

Alexander's friends found his body five days later with stab wounds and a bullet wound, lying in blood in his home.

Flores asked Arias if she ever considered buying a gun, she said she was too scared of handguns.

Jodi Arias/Myspace | ABC News

Jodi Arias Murder Trial: Who Is the Alleged Killer? Watch Video

Jodi Arias Trial: Defense Claims Victim Was Sex Deviant Watch Video

"I've looked into handguns. I have a list of things I'm scared of that I'm trying to overcome," she said. "I got that from Travis, you know, to push yourself out of your comfort zone, and do things you're afraid of. But handguns are expensive and not really in my price range right now."

Arias is accused of stealing her grandmother's handgun and using it to shoot Alexander in the head during the attack.
The detective interviewed Arias by phone multiple times in June after Alexander's body was discovered by his friends on June 9.

Arias was indicted on July 9, 2008, and changed her story again before her arraignment, telling a TV news station that she was at Alexander's house when he was killed and witnessed two intruders kill him.

After she was arraigned, Arias told police she killed Alexander, but did it in self-defense. Arias's attorneys have said that Alexander was controlling and abusive toward Arias, and described him as a "sexual deviant."

In earlier testimony in court today, Arias's new love interest, Ryan Burns, testified that Arias showed up to his house on the morning of Thursday, Dec. 5, just 24 hours after she killed Alexander.

There, the pair cuddled, kissed, and watched movies, according to Burns.

Burns, who met Arias at a business conference in spring, 2008, said he exchanged frequent long phone calls and online conversations with Arias before inviting her to come visit him in West Jordan, Utah, in June. Arias lived in California at the time.

She arrived at Burns's home 24 hours after she was expected there, telling him that she got lost, drove the wrong way on a freeway for a few hours, fell asleep for awhile, and then got lost again, Burns testified today.

She never told him that she had confronted Alexander with a knife or gun and ended up killing him just hours before their date.

When she arrived, the pair quickly got physical, he testified.

"We went back to my house. We talked for awhile, and agreed that we were going to watch a movie. At some point we were talking and we kissed. Every time we started kissing it got a little more escalated. Our clothes never came off, but at some point she was kissing my neck, I was kissing hers, but our clothes never came off," he said.

Burns said that both he and Arias stopped kissing at the time, though they again became physically involved later in the evening when Arias climbed on top of Burns and began kissing him. Burns said that they stopped kissing because he did not want her to "regret the visit" because of her Mormon beliefs about sex.

He also told prosecutors upon questioning that Arias was physically strong.

"She's very fit," he said, describing their encounter when she climbed on top of him. "She's very strong. She has close to a six pack (of abs)."

Prosecutors likely asked about the strength of Arias because in testimony Tuesday Maricopa County medical examiner Kevin Horn said Alexander was stabbed so forcefully that the blade chipped his skull and his neck was cut all the way back to the spinal cord.

Burns, who is also a Mormon, said he noticed two bandages on Arias's hand when she arrived at his house, which she told him she got when a glass broke at her place of employment, Margaritaville.

During her visit, the pair also went to a business meeting and went out with Burns' friends where Burns described Arias as acting "shy" and a "little awkward."

"She was fine, she was laughing about simple little things like any other person. I never once felt like anything was wrong during the day. With a crowd she was a little awkward in social areas, but one on one she was very talkative and excitable," he said.

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Venezuela's top court endorses Chavez inauguration delay

CARACAS (Reuters) - Venezuela's top court endorsed the postponement of Hugo Chavez's inauguration this week and ruled on Wednesday that the cancer-stricken president and his deputy would continue in their roles, despite a cacophony of opposition complaints.

Critics had argued the 58-year-old's absence from his own swearing-in ceremony on January 10 meant a caretaker president must be appointed. Chavez has not been seen in public nor heard from in almost a month following surgery in Cuba.

"Right now we cannot say when, how or where the president will be sworn in," Supreme Court Chief Judge Luisa Morales told a news conference.

"As president re-elect there is no interruption of performance of duties ... The inauguration can be carried out at a later date before the Supreme Court."

The decision opens the door in theory for Chavez to remain in office for weeks or months more from a Cuban hospital bed - though there is no evidence he is even conscious.

It leaves the South American country in the hands of Vice President Nicolas Maduro, as de facto leader of the government.

The opposition say that is a brazen violation of the constitution, and that Maduro should leave office on Thursday when the current presidential term had been due to expire.

They say National Assembly boss Diosdado Cabello, another powerful Chavez ally, should take over the running of the country while new elections would be organized within 30 days.

Maduro would be the ruling Socialist Party's candidate.

Government leaders insist Chavez, 58, is fulfilling his duties as head of state, even though official medical bulletins say he suffered complications after the surgery, including a severe lung infection, and has had trouble breathing.

His resignation or death would transform politics in the OPEC nation, where he is revered by poor supporters thankful for his social largesse, but denounced by opponents as a dictator.

RALLY PLANNED FOR THURSDAY

Opposition leader Henrique Capriles, who lost a presidential election to Chavez in October, said the Supreme Court had become politicized under the socialist leader's administration.

"The tribunal gave an interpretation (of the constitution) in order to solve a problem that the government has," Capriles told a news conference.

Moody's Investors Service warned on Wednesday that Venezuela's sovereign credit rating, already at junk status, faces short-term risks over any political transition.

Prices of Venezuela's widely traded bonds have soared lately on Chavez's health woes, but dipped this week as investors' expectations of a quick government change apparently faded.

The president has undergone four operations, as well as weeks of chemotherapy and radiation treatment, since being diagnosed with an undisclosed type of cancer in his pelvic area in June 2011.

He looked to have staged a remarkable recovery from the illness last year, winning a new six-year term at a hard-fought election in October. But within weeks of his victory he had to return to Havana for more treatment.

The government has called for a huge rally outside the Miraflores presidential palace in Caracas on Thursday, and allied leaders such as Uruguay's Jose Mujica, Bolivia's Evo Morales and Nicaragua's Daniel Ortega have said they will visit - despite Chavez's absence.

Argentine President Cristina Fernandez, a close friend, has announced plans to visit Chavez in Cuba on Friday.

The unprecedented silence by Chavez, who is well known for his hours-long rambling speeches, has convinced many Venezuelans that his 14 years in power may be coming to an end.

Unlike after his previous operations in Cuba, no photographs have been published of him recuperating, and social media in Venezuela is buzzing with rumors he is on life support.

Cabello, the pugnacious head of the National Assembly, has repeatedly ruled out taking over as caretaker president to order a new presidential election, saying Chavez remains in charge.

"Tomorrow we will all go to the Miraflores palace," he told a televised Socialist Party meeting on Wednesday. "The people will be invested as president. We are all Chavez!"

(Additional reporting by Marianna Parraga, Diego Ore and Enrique Andres Pretel; Editing by Andrew Cawthorne and Eric Walsh)

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NEL service delayed due to power fault

SINGAPORE: Train services in both directions on the North East Line (NEL) are delayed due to a power fault.

Train operator SBS Transit alerted commuters at 10:18am on Twitter of a delay of 15 minutes.

It said free bus rides are available at designated bus stops.

SBS Transit first alerted commuters via SMS at about 10am, saying there had been a delay of 15 minutes due to a power fault.

It said at about 10:30am that shuttle services were activated at designated bus stops to provide free bus rides.

- CNA/ck

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Reddit reportedly seeks investors with influence

With Reddit users flocking to the site more than ever, now seems like the perfect time for the company to go searching for investors. Which is exactly what it's doing, but it's not cash that Reddit is after.

According to AllThingsD, the company is seeking certain elite investors that could help with company input -- rather than just fork over a wad of dough. A recent article by TechCrunch noted that the company's valuation has jumped to $400 million, but, according to AllThingsD, Reddit is actually only after around $1 million.

When Reddit was spun out in 2011 from the company that acquired it, Conde Nast, it had $20 million saved up, according to AllThingsD. Since then, the bare-bones company has only spent around $2 million. Apparently, it doesn't take a lot of money to keep the site staffed and running. By the same token, it's not likely that Reddit will become a cash cow for investors wanting a big return either. So, anyone considering an investment in the company would probably need to be interested the business also.

Reddit has been on the up and up ever since it was acquired in 2006. At that time, it said was getting 700,000 page views a day. By September 2011, when it spun out from Conde Nast, it got 1.6 billion page views a month on 21 million unique users. And in October 2012, the site reported more than 3.8 billion monthly page views and more than 46 million unique visitors.

One of the ways Reddit has driven more traffic to its site this past year is by hosting high-level AMAs, or "ask me anything" sessions. In August, Reddit hosted President Barack Obama, whose impromptu hour-long interview crippled the site's servers. Reddit has also done AMAs with the Mars Curiosity rover team, Gangnam Style's PSY, and U.S. Rep. Zoe Lofgren, who asked users for ideas on a bill to protect Web sites accused of copyright violations.

CNET contacted Reddit for comment. We'll update the story when we get more information.

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AP: Gov. Richardson pressing N. Korea to open Internet

Former New Mexico Gov. Bill Richardson is interviewed by journalists after arriving at Pyongyang International Airport in Pyongyang, North Korea, Monday, Jan. 7, 2013. Richardson arrived in the North Korean capital with Executive Chairman of Google Eric Schmidt, and called the trip a private humanitarian visit. / AP Photo/Kim Kwang Hyon

PYONGYANG, North Korea Former New Mexico Gov. Bill Richardson said Wednesday that his delegation is pressing North Korea to put a moratorium on missile launches and nuclear tests and to allow more cell phones and an open Internet for its citizens.

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Google exec. visits North Korea

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Bill Richardson, Eric Schmidt arrive in North Korea

Richardson told The Associated Press in an exclusive interview in Pyongyang that the group is also asking for fair and humane treatment for an American citizen detained in North Korea.

"The citizens of the DPRK (North Korea) will be better off with more cell phones and an active Internet. Those are the three messages we've given to a variety of foreign policy officials, scientists" and government officials, Richardson said.

He is accompanied by Google Executive Chairman Eric Schmidt and Google Ideas think tank Director Jared Cohen on what Richardson has called a private, humanitarian trip. Schmidt, who is the highest-profile U.S. business executive to visit North Korea since leader Kim Jong Un took power a year ago, has not spoken publicly about the reasons behind the journey to North Korea.

The high-profile visit comes just weeks after North Korea launched a long-range rocket to send a satellite into space. Washington has condemned the launch as a banned test of missile technology.

Schmidt, who oversaw Google's expansion into a global Internet giant, speaks frequently about the importance of providing people around the world with Internet access and technology. Google now has offices in more than 40 countries, including all three of North Korea's neighbors: Russia, South Korea and China, another country criticized for systematic Internet censorship.

He and Cohen have collaborated on a book about the Internet's role in shaping society called "The New Digital Age" that comes out in April.

Using science and technology to build North Korea's beleaguered economy was the highlight of a New Year's Day speech by leader Kim Jong Un.

New red banners promoting slogans drawn from Kim's speech line Pyongyang's snowy streets, and North Koreans are still cramming to study the lengthy speech. It was the first time in 19 years for North Koreans to hear their leader give a New Year's Day speech. During the rule of late leader Kim Jong Il, state policy was distributed through North Korea's three main newspapers.

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Holmes Played Childish Games After Aurora Carnage

As police confronted the movie theater carnage and a massive booby trap left behind by accused Aurora gunman James Holmes, the suspect loopily played with hand puppets, tried to stick a metal staple in an electrical socket and clamly flipped a styrofoam cup, according to court testimony today.

Holmes, 25, displayed the bizarre behavior once he was in custody and taken to Aurora police headquarters after the shooting that left 12 people dead and dozens injured, the lead investigator in the case testified today.

While being cross examined by Colorado public defender Daniel King, Police Detective Craig Appel was asked about the observations of two Aurora officers assigned to watch over Holmes in an interrogation room.

Appel said that to preserve possible gunshot residue, police had placed paper bags over Holmes' hands. One officer, King said, noted in a report that Holmes began moving his hands "in a talking puppet motion."

Click here for full coverage of the Aurora movie theater shooting.

King asked if Appel was also aware that the officer "observed Holmes take a staple out of the table and tried to stick it in an electrical socket?" Appel confirmed Holmes' actions.

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The officers also noted that they watched as Holmes began playing with an empty styrofoam cup, trying to "flip it" on the table.

While Holmes was carrying out his childish antics, police were puzzling over a complex booby trap Holmes had left behind in his apartment, according to testimony.

A gasoline-soaked carpet, loud music and a remote control car were part of Holmes' plan to trick someone into triggering a blast that would destroy his apartment and lure police to the explosion while he shot up a movie theater in Aurora, Colo., according to court testimony.

FBI agent Garrett Gumbinner told the court that he interviewed Holmes on July 20, hours after he killed 12 and wounded 58 during the midnight showing of "The Dark Knight Rises."

"He said he rigged the apartment to explode to get law enforcement to send resources to his apartment instead of the theater," Gumbinner said.

His plan failed to prompt someone into triggering the bombs.

Gumbinner said Holmes had created two traps that would have set off the blast.

The apartment was rigged with a tripwire at the front door connected to a mixture of chemicals that would create heat, sparks and flame. Holmes had soaked the carpet with a gasoline mixture that was designed to be ignited by the tripwire, Gumbinner said.

"It would have caused fire and sparks," the agent said, and "would have made the entire apartment explode or catch fire."

Holmes had set his computer to play 25 minutes of silence followed by loud music that he hoped would cause a disturbance loud enough that someone would call police, who would then respond and set off the explosion by entering the apartment.

Gumbinner said Holmes also told him he rigged a fuse between three glass jars that would explode. He filled the jars with a deadly homemade chemical mixture that would burn so hot it could not be extinguished with water.

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Venezuela postpones inauguration for cancer-stricken Chavez

CARACAS (Reuters) - Venezuela will postpone the inauguration of President Hugo Chavez for a new term due to health problems, the government said on Tuesday, another sign the socialist leader's cancer may be bringing an end to his 14 years in power.

The 58-year-old former soldier who has dominated the South American OPEC nation since 1999 has not been heard from since surgery on December 11 in Cuba - his fourth operation since he was diagnosed with an undisclosed type of cancer in June 2011.

The announcement outraged opposition leaders who insist that Chavez must be sworn in before the National Assembly on January 10 as laid out in the constitution, or temporarily step aside and leave an ally in power.

"The commander president wants us to inform that, based on his medical team's recommendations, the post-operative recovery should extend past January 10," said Vice President Nicolas Maduro, Chavez's chosen successor, in a letter read to the legislature.

"As a result, he will not be able to be present at the National Assembly on that date."

The letter said authorities would seek another date for the inauguration ceremony but did not say when it would take place or give a time frame for Chavez's return from Havana.

Rather than being sworn in by the legislature, he would take his oath at a later date before the Supreme Court, the letter said, as allowed by the constitution.

Government leaders insist Chavez is completely fulfilling his duties as head of state, even though official medical bulletins say he has a severe pulmonary infection and has had trouble breathing.

The government has called for a massive rally outside the presidential palace on Thursday, and allied presidents including Uruguay's Jose Mujica and Bolivia's Evo Morales have confirmed they will visit Venezuela this week despite Chavez's absence.

Argentine President Cristina Fernandez has announced plans to visit Chavez in Havana on Friday.

But the unprecedented silence by the president - famous for regularly speaking for hours in meandering broadcasts - has left many convinced he could be in his last days.

His resignation or death would upend politics in the oil-rich nation, where he enjoys a deity-like status among poor supporters thankful for his social largesse.

His critics call him a fledgling dictator who has squandered billions of dollars from crude sales while dashing the independence of state institutions.

CONSTITUTION DISPUTE

The constitution does not specify what happens if the president does not take office on January 10.

The Supreme Court, controlled by Chavez allies, called a news conference for Wednesday. It is widely expected to announce an interpretation of the constitution that will give Chavez leeway to take office when he is fit to do so.

If he dies or steps aside, new elections would be called within 30 days. Before leaving for Havana in December, the president instructed his supporters to back Maduro in that vote if he were unable to continue.

Opposition leaders argue that Congress chief and Chavez ally Diosdado Cabello should take over, as mandated by the constitution if the president's absence is formally declared.

Cabello has ruled that out, saying the president continues to be in charge.

"Who could have believed the opposition would be screaming for Diosdado Cabello to be given the presidency of the republic?" he said during a rambunctious session of Congress. "That's crazy, the opposition is losing it."

Meanwhile opposition deputies accused the Socialist Party of failing to follow Chavez's instructions - a scene that would have been unimaginable before Chavez's prolonged absence.

"President Chavez is the only one among you who has spoken clearly," said opposition leader Julio Borges.

He was drowned out by pro-Chavez deputies clapping and chanting the socialist leader's name and rebuffed by Cabello, who had long been considered a potential successor to Chavez until he was passed over for Maduro.

"It's not my fault you weren't chosen, don't take your frustration out on me," Borges quipped.

Another opposition deputy complained that during the debate a copy of the constitution was thrown across the chamber from the direction of the Socialist Party's deputies.

Chavez's supporters have held near-daily vigils for his recovery, while opposition activists accuse the president's allies of a Cuban-inspired manipulation of the situation.

Maduro has taken over the day-to-day running of the government and looks set to continue in the role past Thursday.

The mustachioed former bus driver lacks Chavez's charisma, but he has sought to imitate the president's style with vituperative attacks on the opposition and televised ribbon-cutting ceremonies.

With the micro-managing Chavez away, major policy decisions in Venezuela, such as a widely expected devaluation of the bolivar currency, appear to be on hold.

Venezuelan bond prices, which had soared in recent weeks on Chavez's health woes, dipped on Monday and Tuesday as investors' expectations of a quick government change apparently dimmed.

"The 'regime change' euphoria seems excessive taking into account the unclear legal transition and perhaps, more importantly, the risk that regime change does not allow for policy change," New York-based Jefferies' managing director Siobhan Morden said in a note on the bonds.

(Editing by Daniel Wallis and Eric Beech)

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Japan plans US$2.1b military spend in stimulus package: official

TOKYO: Japan plans to spend $2.1 billion on its military over the next few months as part of a huge stimulus package, a defence ministry official said Wednesday, amid growing concerns over a rising China.

The cash is in addition to the regular military spending for 2012-13 and is separate from a boosted budget request for next fiscal year that ruling party policy makers called for on Tuesday.

"We will request 180.5 billion yen to be allocated to military spending from a stimulus package," a defence ministry spokesman told AFP, adding that some of the cash will be used to buy PAC-3 surface-to-air anti-ballistic missile systems and modernise four F-15 fighter jets.

The request for funds has to be approved by the finance ministry before being officially included in the stimulus the government is set to announce later this month, reportedly worth 13.1 trillion yen for this fiscal year to March.

The announcement came a day after Prime Minister Shinzo Abe's ruling Liberal Democratic Party said Japan will increase military spending for the first time in 11 years next fiscal year starting from April.

Japan is involved in a territorial tussle with China over a group of uninhabited islands in the East China Sea. Beijing has sent vessels to the area dozens of times and late last year dispatched a plane.

Nerves in Tokyo have also been rattled by an unpredictable North Korea. It sent a rocket over Japan's southern islands last month in what it insisted was a satellite launch. Tokyo and its allies said the launch was a covert ballistic missile test.

"Out of 180.5 billion yen, the defence ministry plans to use 60.5 billion yen to prepare for the changing security environment surrounding Japan," the spokesman said.

The defence ministry also plans to purchase three SH-60K patrol helicopters and to add a battery for an intermediate-range ballistic missile system, he said.

"We need to update our equipment as the security environment surrounding Japan is becoming harsher as North Korea has test-launched missiles twice in the last year and tensions with China continue," he said.

Under usual precedent, 70-80 percent of a defence order must be spent with domestic firms, although this is not a legal requirement, he said.

-AFP/ac

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Stylus lets you 'touch' normal screens, except when it won't

The APEN Touch8 Smart Pen brings touch to non-touch screens -- when it works.

(Credit:
Seth Rosenblatt/CNET)

LAS VEGAS--APEN's Touch8 Smart Pen is a soft-tip stylus that gives non-touch screen Windows 8 computers the power of touch. It's a great idea, but it can't quite leave its mark.

The idea is clever. Instead of missing out on touch functionality on an otherwise high-end system that lacks a touch screen, pick up an $80 USB dongle and its connected pen to bring that touchless monitor into the future. There's no word yet on when it will be available.

The Touch8 Smart Pen works on desktop monitors and laptops of up to 17 inches and doesn't require additional drivers, so setup is uncomplicated. The Smart Pen itself connects to a small box that clips onto the side of your monitor, which reads the pen's contact with the screen.

After connecting the box to your computer via USB, you must calibrate the pen by touching four crosshairs on your screen. From there, touching the soft-tip of the pen to your monitor will have the same effect as using your finger on an actual touch screen.

At least, that's how it works in theory. When I tested it this morning, even re-calibrating the pen didn't fix problems it had accessing the Charms bar on the right edge of
Windows 8, and it worked only about half the time on the apps bar on the left edge.

The pen has other problems, as well. The soft tip that I tested ensured that the monitor wouldn't get scratched, but it also made precision a challenge.

The pen could learn a trick or two from Wacom, too. The drawing
tablet-maker's stylii have had mouse buttons on them for years. The Touch8 Smart Pen doesn't, so every time you want to use the mouse you have to put down the pen. It's an annoying extra step that negates much of the pen's utility.

I like the idea of bringing touch screen functionality to older monitors that are otherwise in excellent condition, especially through a low-cost USB device, but the Touch8 Smart Pen lacks the right... well, touch.

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Report: Iran's oil and gas revenues plummet 45 percent

TEHRAN, Iran Iran's revenues from vital oil and gas exports have dropped by 45 percent because of sanctions over its suspect nuclear program, a senior lawmaker said Monday, a clear admission that sanctions over Iran's suspect nuclear program are having a severe impact.

Iran's sanctions-driven financial crisis has led to collapse of the currency, proposals for an austerity budget and government demands that local airlines clear their debts pay cash for fuel, or faced grounding — but its leaders have given no indication that they might give in to the pressure and scale back their nuclear development program.

Gholam Reza Kateb, head of the parliament's budget committee, said oil exports have dropped 40 percent in the last nine months compared to the corresponding period last year. He said banking sanctions also contributed to the 45 percent reduction in revenues.

Iran is under U.N. sanctions and Western oil, banking and trade restrictions over its refusal to halt uranium enrichment, which is a potential pathway for nuclear weapons development. The U.S. and its allies believe Iran might be on a path toward producing nuclear bombs.

Iran insists its nuclear program is peaceful, aimed at generating electricity and producing radioisotopes to treat about 1 million cancer patients a year.

Crude oil exports account for nearly 80 percent of Iran's foreign revenue.

Kateb said details of the steep revenue drop emerged Monday in a report by Oil Minister Rostam Qasemi to the parliament on the status of crude oil and liquid gas sales.

"On the basis of the report, oil sales are down 40 percent and income has dropped 45 percent in the last nine months," Kateb was quoted by the semiofficial ISNA news agency as saying.

The Iranian government is preparing to present an austerity budget to parliament for the next Iranian calendar year that begins March 21. It would substantially increase income taxes as a way of avoiding a budget deficit.

The government is already facing a cash crunch from the drop in oil revenues as a result of Western sanctions that Iran calls it an "economic war."

The International Energy Agency says Iran's oil exports plunged to 1 million barrels a day in July last year from 1.74 million barrels a day in June after an embargo by the European Union, which accounted for around 18 percent of Iran's exports. But it said exports picked up to about 1.3 million barrels a day in November.

Kateb said experts are predicting that Iran will be able to export 1.5 million barrels of oil a day over the next year. Iran has also sought to increase its export of oil byproducts as a way of bypassing the sanctions.

In another sign of the effectiveness of the sanctions sanctions, most flights operated by Iranian airlines to domestic and international destinations have been cancelled because of unpaid debts.

Abdolreza Mousavi, an aviation official, said Monday the Oil Ministry would supply fuel to airlines only if they pay their debts and buy fuel with cash. He was quoted by the semiofficial ISNA news agency.

Jalil Salari, an Oil Ministry official, said Iranian airlines owe the government more than 4,600 billion rials ($144 million).

Mahmoud Rasoulinejad, another aviation official, said the Oil Ministry has given the airlines 24 hours to settle their debts or be grounded.

Iranian airlines nearly doubled prices of plane tickets in November because of higher fuel prices and the plunging value of the Iranian rial against foreign currencies.

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