US forces have released seven Iranians who were detained in a swoop on a hotel in Baghdad, Iraqi officials say.
The men were seized overnight from one of the main hotels in the capital and led away blindfolded and in handcuffs.
The Iranian embassy in the city said the men were helping rebuild electricity power stations in Iraq.
The Iraqi government helped secure their release early on Wednesday, a spokesman for Prime Minister Nouri Maliki told the BBC.
The group was detained at the Sheraton Ishtar Hotel. Video footage showed soldiers leading the men out of the building.
'Murderous activities'
Other soldiers were seen carrying what appeared to be luggage and a laptop computer bag.
The BBC's Mike Wooldridge in Baghdad said Tehran insisted the men were technicians from the Iranian electricity ministry and had been helping fix a power station in Najaf.
The arrests followed a speech by US President George W Bush in which he criticised Iranian interference in Iraq.
Tensions between the US and Iran are running high - with the US accusing Iran of providing arms, money and military training to Shia insurgents in Iraq.
President Bush stated that he had authorised his military commanders in Iraq to confront what he called Iran's "murderous activities" in the country.
"Iran's actions threaten the security of nations everywhere. We will confront this danger before it is too late," Mr Bush said.
The president also said the entire region would be under the shadow of a "nuclear holocaust" if Iran developed nuclear weapons. Tehran insists its nuclear programme is peaceful.
Earlier, Iranian President Mahmoud Ahmadinejad said US power in Iraq was on the verge of collapse and this would lead to "a huge vacuum" which Iran would be willing to fill.
In January, five Iranians - who the US say are linked to Iran's Revolutionary Guard and were training militants in Iraq - were captured in the northern city of Irbil. They remain in US custody.
http://news.bbc.co.uk/2/hi/middle_east/6967850.stm