Lebanese Prime Minister Saad Hariri Announces Sudden Resignation

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Former Lebanese Prime Minister Saad al-Hariri gives a speech during the opening ceremony of the second "Kuwait Financial Forum" in Kuwait City on 31 October 2010.

Iran said on Saturday that the resignation of Lebanese Prime Minister Saad Hariri would create tension in Lebanon and the region.

There is "no danger to the economy or pound", Khalil said.

"We did not seek this resignation", said Nasrallah, whose powerful movement has participated in Hariri's government for nearly a year.

Al-Hariri placed the blame squarely on Iran and Hezbollah.

Hariri had said there was a plot to kill him, and accused Hezbollah and its Iranian backers of sowing strife in the Arab world.

Hezbollah chief Hassan Nasrallah is set to address Hariri's resignation in a speech on Sunday, the Hezbollah-affiliated Al-Manar TV reported.

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The Saudi-owned daily also said Hariri believed he was being used as a cover by Iran and Hezbollah to "lead the country towards great adventures where he will be a pawn to cover up their actions".

Saudi Arabia and Iran are regional arch foes.

The government was formed late last year in a political deal that ended years of deadlock, and last month it produced Lebanon's first budget since 2005.

Under the power-sharing system that helped end Lebanon's 1975-1990 civil war, the president must be a Christian, the premier a Sunni and the speaker of parliament a Shiite. Hezbollah is considered a terrorist organization by a number of countries including the United States, Israel, and the United Kingdom.

The sudden resignation could throw Lebanon's government back into crisis.

According to the source, with their inappropriate demands, Hariri and the Saudis expected Iran to leave alone the Yemenis to their fate "but after receiving Iran's negative response, the Saudis called back Hariri and urged him to resign".

"I announce my resignation as a prime minister", he said.

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