Wednesday, July 9, 2008

Iran tests missiles, heating tension with West

TEHRAN, July 9 (Reuters) - Iran test-fired nine missiles on Wednesday and warned the United States and Israel it was ready to retaliate for any attack over its disputed nuclear projects.

Washington, which says Iran seeks atomic bombs, told Tehran to halt further tests. Iran, the world's fourth largest oil producer, says its nuclear programme is only for electricity.

Iran's missile tests rattled oil markets, helping crude prices to rebound about $2 a barrel after recent falls.
Speculation that Israel could bomb Iran has mounted since a big Israeli air drill [exercise] last month. U.S. leaders have not ruled out military options if diplomacy fails to end the nuclear row. More >>>