Witnesses say protesters and riot police are clashing in the streets around Iran's parliament.
Three witnesses told The Associated Press hundreds of protesters have gathered in a square next to the parliament building in defiance of government orders to halt demonstrations demanding a new presidential election.
The police beat the protesters with batons, released tear gas and fired gunshots in the air, the witnesses said.
Some demonstrators reportedly fought police while others fled to another of the city's squares about one mile to the north.
Another witness told Reuters news agency police and protesters clashed in Baharestan Square but said there were no casualties.
However, a woman who said she witnessed the violence told CNN: "This is a massacre."
Amateur video posted on the internet purportedly shows the chaos on the streets amid the renewed violence.
Young men and women can be seen throwing rocks and pushing barricades, one blazing, in the street.
Others shout: "Death to the dictator!"
It is not possible to verify the video because of government reporting restrictions.
Iran has ordered journalists for international news agencies to stay in their offices, barring them from reporting on the streets.
But Twitter users, who claim to be in Tehran, are also saying police are beating people on the streets and shooting "people like animals".
"I see many ppl with broken arms/legs/heads - blood everywhere - pepper gas like war," persiankiwi writes in English.
"They were waiting for us - they all have guns and riot uniforms - it was like a mouse trap - ppl being shot like animals."
Sky News does not know who this user is but they have supplied information over the last week which appears to suggest they are messaging from inside Iran.
Twitter user persiankiwi also reported seeing seven or eight militia using batons to beat a woman on the ground.
"She had no defence nothing - sure that she is dead."
The user goes on to say people are fleeing into alleys where militia are waiting for them, writing: "From 2 sides they attack ppl in middle of alleys."
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