The group of Iranians are suspected of planning the atrocity at the embassy in Kensington, west London, The Times has reported.
Officers carried out searches at addresses in Greater Manchester, London and Swindon areas.
The Home Office and the police have refused to publicise details of the alleged plot, but it is understood the Israeli embassy was the main target.
Police forensic officers search a house in Rochdale, Greater Manchester, following a raid by counterterror officers (Photo: Ryan Jenkinson/Getty)Four of the men, aged between 29 and 46, remain in custody. A fifth man, aged 24, has been bailed.
Addressing the raids in the Commons on Tuesday, the minister also refused to give details on the immigration status of the suspects when pressed by several MPs.
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In a separate operation three other Iranian men were also arrested on Saturday at addresses in north-west London and west London. They were the first Iranian nationals to be detained under the National Security Act, Jarvis said, suggesting that they are likely being questioned over allegations that they were working on behalf of a foreign state.
It means anyone who is directed by the regime to carry out activities in the UK must declare it or face five years in prison once the scheme comes into force in July.
The head of MI5, Ken McCallum, in October last year said that authorities had stopped 20 state-backed plots hatched by Iran in the UK since 2022.
The Government has also faced pressure to designate Iran’s Islamic Revolutionary Guard Corps (IRGC) a terrorist organisation.
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