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URGENT: Video shows beheading of second American journalist

DUBAI (Reuters) - The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff, the SITE monitoring service reported on Tuesday. A masked figure in the video also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State", the monitoring service said. (Reporting by William Maclean, Editing by Angus MacSwan)

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Iran cool to re-elected Obama and talk of talks

DUBAI (Reuters) - Iran reacted coolly to Barack Obama's re-election on Wednesday, as the head of its judiciary condemned the "crimes" of U.S. sanctions and indicated the president should not expect rapid new negotiations with Tehran.

"After all this pressure and crimes against the people of Iran, relations with America cannot be possible overnight and Americans should not think they can hold our nation to ransom by coming to the negotiating table," Sadeq Larijani was quoted as saying by IRNA news agency.

There had been speculation that, if Obama won a second term, the United States, which has not had diplomatic relations with Iran for three decades, might seek to engage it in direct talks. Obama wants to curb an Iranian nuclear program which he believes has a military purpose, despite Iran's denials.

Larijani recalled disappointment in Tehran after Obama first took office in 2008: "Four years ago, Obama ... announced he would extend the hand of cooperation to Iran," he said. "But he pursued a different path and imposed unprecedented sanctions and it is natural the Iranian people will never forget such crimes."

Other Iranian leaders had yet to comment.

(Reporting By Marcus George; Editing by Alastair Macdonald)

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