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Row Over Iran's Nuclear Programme

Tehran tests missile as US tightens sanctions

AFP, Tehran
Iran said yesterday it tested a new medium-range missile during war games near a vital Gulf oil transit channel, hours after US President Barack Obama signed a law tightening sanctions against Tehran over its nuclear programme.
A military spokesman also announced that Iranian ships and submarines will today carry out manoeuvres designed to allow them to shut the strategic channel, the Strait of Hormuz, ifTehran so wishes.
The show of military muscle underlined a threat by Iran to shut the narrow strait — a through point for 20 percent of the world's oil — if more Western sanctions were applied over its nuclear programme.
The potential for that scenario, and possible confrontation with US warships that patrol the Gulf, was given
impetus when Obama on Saturday signed tough new sanctions targeting Iran's central bank and financial sector.
Under the measures, foreign firms will have to choose between doing business with the Islamic republic or the economically mighty United States.
The aim is to put the squeeze on Iran's crucial oil revenues, most of which are processed by the central bank.
The new US sanctions were "unjustifiable," Mohammad Nahavandian, the head of Iran's chamber of commerce, told the ISNA news agency. He said previous sanctions had "failed to haltlran'strade."
Iran has said new sanctions, including a possible oil embargo being mulled by the European Union, could push it to close the Strait of Hormuz. Its war games underlined the threat.
"From tomorrow morning (Monday) , a vast majority of our naval units -
- surface and underwater, and aerial — will implement a new tactical formation, designed to make the passage of any vessel through the Strait of Hormuz impossible if the Islamic Republic of Iran's navy so chooses," navy spokesman Commodore Mahmoud Mousavi was quoted as saying by the ISNA news agency.
Mousavi said yesterday that "for the first time, an anti-radar medium-range missile was successfully fired during the massive naval drills," according to state media.
Oil market analysts is watching developments near the Strait of Hormuz closely.
Oil prices climbed briefly after Iran's vice president, Mohammad Reza Rahimi, vowed Tuesday that "not a drop of oil will pass through the Strait of Hormuz" if more sanctions were imposed.