Mossad agents posed as CIA in operation: report

Using American dollars and US passports, the agents passed themselves off as members of the Central Intelligence Agency in the operations, notably in London, according to memos from 2007 and 2008, said the report.

Jundallah (Soldiers of God) says it is fighting for the interests of the southeastern province's large ethnic Baluch community, whose members, unlike most Iranians, mainly follow the Sunni branch of Islam.

The Baluch straddle the border with neighboring Pakistan and Afghanistan and Jundallah militants have taken advantage of the unrest in the region to find safe haven in the border region.

In July it claimed responsibility for attacking the Grand Mosque in the provincial capital Zahedan, reportedly targeting members of Iran's elite Revolutionary Guards Corps, killing 28 people.

"It's amazing what the Israelis thought they could get away with," a US intelligence officer told Foreign Policy.