The story: Contradictory statements on the fate of a German-Iranian dissident are putting the spotlight on rising tension between Berlin and Tehran. The Iranian judiciary initially reported that Jamshid Shahrmahd, sentenced to death for his alleged role in a deadly bombing of a mosque, had been “punished for his actions.”

The suggestion that Sharmahd was executed quickly sparked condemnation from Germany, which recalled its ambassador to Tehran and shut down Iran’s consulates over the “murder.” However, in a twist, an Iranian judiciary spokesman...