Saudi, Iran working on deal to end Lebanon crisis

BEIRUT, Jan 24 (Reuters) Saudi Arabia and Iran, backers of the main rivals in Lebanon's political crisis, are negotiating a deal to end the standoff, Lebanese political sources said.

They said Prince Bandar bin Sultan held talks with senior Iranian official Ali Larijani in Tehran to try to reach an agreement that both the government and the opposition would accept, a day after protests led to clashes that killed three people and raised fears the country was sliding towards civil strife.

The opposition, which includes the Iranian-backed Hezbollah, has been demanding veto power in government and early elections.

Saudi-backed Prime Minister Fouad Siniora and his allies, who form a majority in cabinet and in parliament, have refused to give in.

The Lebanese sources did not give many details on the proposed deal but one source said it covered formation of a unity government and an understanding on a UN-backed international court to try suspects in the killing of Lebanon's former Prime Minister Rafik al-Hariri in 2005.

The source said if there was an agreement in Tehran, the Saudis would present an initiative to resolve the crisis at an international aid conference for Lebanon in Paris.

Many Lebanese believe Syria, another Hezbollah ally, was behind Hariri's assassination. Damascus denies any links.

Shi'ite Muslim Hezbollah has said it did not oppose the court but wanted to discuss its details. The Sunni-led majority coalition accuses Hezbollah of trying to block the court to protect Syria.

REUTERS SI RK2351