The dispute arose even before polls closed early today, heightening tensions across the capital where emotions have been running at a fever pitch. Mir Hossein Mousavi, the reformist candidate, suggested he might challenge the results.
The messy and tense outcome capped a long day of voting, which was extended for six hours to accommodate a huge turnout. It raised worries that Iran's Islamic establishment could use its vast powers to pressure backers of Mousavi.
During the voting, text messages, a key campaign tool for reformers, were blocked - as were some pro-Mousavi websites. Security officials warned they would not tolerate political gatherings or rallies before the final results were known.
Even before the first vote counts were released, Mousavi held a news conference to declare himself "definitely the winner" based on "all indications from all over Iran." But he gave nothing more to back up his assertion and alleged widespread voting irregularities without giving specifics, suggesting he was ready to challenge the final results.
Moments after Mousavi spoke, however, Iran's state news agency reported that Ahmadinejad was the victor. The report by the Islamic Republic News Agency also gave no details.
It was not reported whether the results were from locations considered Ahmadinejad strongholds or where Mousavi hoped to make headway.
The turnout was not immediately known, but election officials had predicted a possible record among the 46.2 million eligible voters.
During the voting, some communications across Iran were disrupted; Internet connections slowed dramatically in some spots, affecting the operations of news organizations including The Associated Press. It was not clear what had caused the disruptions.
A high turnout was expected to help Mousavi, who is counting on an outpouring from what's been called his "green tsunami" - the signature color of his campaign and the new banner for reformists seeking wider liberties at home and a gentler face for Iran abroad.
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