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Former Iranian prime minister and presidential candidate Mir Hossein Mousavi flashes the V sign after casting his vote at a polling station at the Ershad mosque on Friday in Tehran, Iran.Majid

Iran's elections agency and state media declared incumbent Mahmoud Ahmadinejad the winner of yesterday's presidential election, but his moderate opponent, Mir-Hossein Mousavi, appeared unwilling to accept the results and alleged "irregularities" among the millions of votes cast.

Voter turnout approached record levels yesterday as rural and traditional Iranians supported Mr. Ahmadinejad, 52, against Mr. Mousavi, his primary challenger and a former prime minister whose candidacy was built on strong support among youth and women voters.

Last night, Mr. Ahmadinejad was leading with 65 per cent of the 28 million counted votes, to Mr. Mousavi's 31 per cent, state officials said.

It was a blow to the dreams of the so-called "green tsunami" or Mr. Mousavi's supporters, named for his campaign colour, who hoped for greater liberties at home and an improved worldwide reputation for Iran. In Tehran, where educated and affluent voters were expected to flock to Mr. Mousavi, wait times at voting stations topped one hour. U.S. President Barack Obama said yesterday he saw the "possibility of change."

Those dreams appeared defeated last night, but Mr. Mousavi, 67, wasn't giving up. Earlier in the day, he had claimed a two-thirds majority for himself - before voting finished - and later alleged widespread voting irregularities.

Text-messaging service was down for much of the day, a blow to Mr. Mousavi's urban base, and many Iranian websites were unavailable online. It was unclear what caused the phone and Internet outages.

Mr. Mousavi suggested he would challenge the results of the election. Final results are expected today.

Any dispute over results had the potential to turn ugly. The Interior Ministry, which oversees voting, said all rallies or political gatherings would be banned until after the formal announcement of results. Last night, there were already reports of scuffles between security forces and voters, largely supporters of Mr. Mousavi. The political chief of the powerful Revolutionary Guard warned Wednesday, two days before the election, that it would crush any "revolution" against the Islamic system by Mr. Mousavi's "green movement."

The claims of victory began before polls closed. Mr. 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 claim.

Moments after he spoke, however, Iran's state news agency reported that Mr. Ahmadinejad, who draws strong support from rural Iran, was the victor. It also gave no details.

They're vying for the president's office, which, although a high-profile position on the world stage, plays second fiddle to the Supreme Leader Ayatollah Ali Khamenei, who controls the army and justice system.

Although the president can't direct most high-level Iranian policies, the election focused on what the office can influence, including economic policy, freedom of the press and political association, and acting as Iran's voice to the world. The campaign featured a number of firsts, including televised debates. In one, Mr. Ahmadinejad criticized Mr. Mousavi's wife - holding up a photo of her on camera - a move perceived as a low blow by some voters.

Voter turnout endured pouring rain in some areas and blistering heat that hit 45 degrees in others, as many polls stayed open for several hours past their scheduled closing time. In Tehran, a bride in her wedding gown cast her ballot. The green tsunami of youth voters rallied around Mr. Mousavi, who served as prime minister in the 1980s.

"I hope to defeat Ahmadinejad today," said Mahnaz Mottaghi, 23, after casting her ballot at a mosque in central Tehran.

"He is our Obama," added Maliki Zadehamid, a 39-year-old exporter, of Mr. Mousavi.

Votes were cast across the world yesterday by Iranian expatriates. In the Untied States, where about 414,000 Iranians live, 41 voting stations were set up by volunteers.

Shahab Baniadam, 51, said he had been in the United States for 30 years and it was his first time voting in Iranian elections. He said he voted for Mr. Mousavi and that he "seems like a reasonable person."

Two other candidates - conservative former Revolutionary Guard commander Mohsen Rezaie and moderate former parliament speaker Mahdi Karroubi - were getting a fraction of the vote. If neither Mr. Ahmadinejad nor Mr. Mousavi receives more than half the votes, a runoff election will be scheduled for next Friday.

With reports from Associated Press and Reuters

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