Suspected Mossad spy is a US-Israeli student

A US-Israeli student, Ilan Grapel, suspected to be a Mossad spy is being questioned in Cairo after his arrest on Sunday 12th June. Grapel, 27, is accused of attempting to sabotage Egypt's uprising by inciting sedition.

Speaking about Grapel, Israel's Foreign Minister Avigdor Lieberman told Army Radio: "He has no connection to any intelligence apparatus, not in Israel, not in the US and not on Mars…This is a mistake or strange behaviour by the Egyptians…They have received all the clarifications and I hope the whole story will end quickly.”

On Monday 13th June, Egypt's State Prosecutor issued a statement saying that Grapel had posed as a foreign correspondent covering anti-government protests in Cairo's Tahrir Square, with the intention to foment Muslim-Christian tension and turn the people against the army following president Hosni Mubarak's resignation.

Israel insists that despite Grapel's reported "identification" by an allegedly "Israeli organisation," the Egyptian reports of a Mossad agent's arrest are unreliable. Foreign Ministry Spokesman Yigal Palmor told the BBC on Monday: "There is no such thing, no Israeli agent has been arrested in Egypt… These reports are false. So far we did not receive any information from the Egyptian authorities on an Israeli citizen who has been arrested."

Sources: BBC News, Bikya Masr, Ynetnews

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

Two Iranian vessels enter Suez Canal

Maritime officials say two Iranian warships have entered Suez Canal and are making headway to the Mediterranean Sea. According to Iran, the ships are headed toward Syria for training. Israel has voiced concern about the mission, calling it a "provocation".

It is thought that the vessels are the first two to have passed through the waterway since Iran's Islamic Revolution, in 1979. They entered the “canal at 0545 (0345 GMT)".

Egyptian officials have been assured by Iran that the ships contain no military equipment or nuclear materials. The only way Egypt could have denied transit through the strategic waterway is if there was a threat of war. The Iranian ships are to be based at a Syrian port, thus solidifying the close ties between Damascus and Tehran.

Israel is concerned about Iran's latest undertaking as it considers the Islamic Republic a threat due to its controversial nuclear programme and support of Lebanese and Palestinian militant groups.

Last week, Israel's Foreign Minister Avigdor Lieberman said: "To my regret, the international community is not showing readiness to deal with the recurring Iranian provocations. The international community must understand that Israel cannot forever ignore these provocations.”

Sources: BBC News, Washington Post, Jerusalem Post, AFP

For more news and expert analysis about Iran, please see Iran Strategic Focus.