Thousands of Iranians protest near university

Uniformed and plain-clothes police officers with batons later moved to break up the protest, but there were no major clashes and witnesses said they saw only a handful of arrests.

But several motorcycles were torched and some shops' windows and a state bank were smashed as demonstrators dispersed.

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Residents said a student protest over plans to privatise universities developed into a political demonstration by some 3,000 people who gathered upon hearing that police had surrounded the dormitory.

"Political prisoners must be freed," the crowd shouted in a square near Tehran University, the scene almost four years ago of the biggest pro-reform unrest since the 1979 revolution -- which was also led from the same campus.

Other chants were directed against Iran's clerical rulers. Residents said the chants were the most extreme since the unrest four years ago.

Many people said they had gathered after hearing calls by US-based Iranian exile satellite television channels to go to the campus after the student protests on Tuesday.

"I heard the students had gathered from television," said 46-year-old housewife Parvin.

The head of security at Tehran governor's office said more protests might be expected.

Many in Iran have lost faith in moderate President Mohammad Khatami and his lack of progress in reforming the 24-year-old Islamic Republic in the face of strong conservative opponents in powerful positions within the state.