Iranian authorities may place an official boycott on Coca-Cola products, as part of retaliatory measures for US support of Israel's assault on Gaza, according to a report.

Authorities are investigating local company Khoshgovar, which is believed to be the distributor of Coca-Cola soft drinks in Iran, according to a report by Agence France Presse yesterday (19 January), citing the hardline and government-backed Iranian newspaper, Kayhan.

Kayhan's international edition reported on Monday that the government had proposed a boycott on "Zionist" products, thought to extend to those from the US.

Khoshgovar in Iran has denied direct dealings with Coca-Cola. However, the firm's business in neighbouring Azerbaijan states that it is the official bottler and distributor of Coca-Cola products on the Azerbaijan drinks market.