Speculation about Iranian “blogfather” Hossein Derakhshan remains rife in the blogosphere, following reports of his arrest earlier this week. Those of us following this strange tale (and there are some who think, not without reason, that it could be a publicity stunt) might want to take note of the fate of another Iranian accused - as Derakhshan apparently has been - of spying for Israel.

Ali Ashtari was executed this morning after being found guilty of espionage on Israel’s behalf. Ynet reports:

Formerly the owner of an electronics import business, the 43-year-old resident of Tehran was convicted in June of spying in exchange for Israeli monetary payment. He reportedly confessed in court to meeting with three Mossad agents who gave him money and electronic equipment for distribution amongst Iranian security officials. Iranian media reported Ashtari expressed remorse for his actions.

“Iran is too intelligent to believe the lies the enemy’s agents are trying to tell it,” Ashtari told reporters at the courthouse. It is believed his statement was dictated by the Iranian Intelligence.

Ashtari further told reporters that his business was based mostly on importing wireless communication devices from Dubai, “since besides imports I was also doing some planning and consulting work, so they (Israel) asked me about the communications’ infrastructure in Iran.”

According to court records, Ashtari said that the Mossad gave him $50,000 as a business loan, “to buy merchandise to sell in Iran.”

Iran is keen on portraying itself as having the upper hand in the intelligence war it says is being waged against it from the West.

So keen that it dictates the final words of a condemned man. You outsmarted me, Ashtari essentially said, just as you outsmart everybody.

As tension over its nuclear program escalates, Iran is going to become even more eager to demonstrate its intelligence prowess. AFP quotes an official who was pretty blunt on this point: “By announcing Ashtari’s execution we meant to show new intelligence wars have started with the intelligence services of the enemy and intelligence wars have become more serious.”

Rooting out nests of spies is a favorite tactic of repressive regimes: it sows fear among the population and reinforces the sense that the state is never too far from your living room, school, workplace or cafe.

Expect, too, that Iran will hand down Ali Ashtari’s sentence to anyone accused of spying. The regime is notoriously keen on executing its citizens for a range of offenses - homosexuality being one of them - with 317 executions recorded in 2007. The noose is getting tighter.