WORLD> Middle East
|
WORLD> Middle East
|
|
Iran stages war games, rejects nuclear demand
(Agencies)
Updated: 2008-07-08 09:57 "We are consulting with our partners in the P5+1 (permanent five UN Security Council members plus Germany) on issues related to that response and what we might hear and what we have heard thus far," a spokesman said of the conference call. The goals of Iran's war games included raising combat readiness and the capability of missile units. Exercises started a few hours ago, the Fars and Mehr news agencies said, without giving details on where the maneuvers were taking place. The Guards often hold maneuvers in the Gulf. The Revolutionary Guards' head said in remarks published in late June that Tehran would impose controls on shipping in the Gulf and the strategic Strait of Hormuz if it was attacked. The US Navy last week vowed that Iran would not be allowed to block the Gulf waterway which carries crude from the world's largest oil exporting region. The US Navy on Monday said two US vessels were taking part in its exercise alongside a British warship and one from Bahrain, a Gulf Arab ally which hosts the Fifth Fleet. Democratic presidential candidate Barack Obama said on Monday that harsh US rhetoric toward Iran appeared to be contributing to the surge in oil prices and that a calmer approach might help soothe the markets. "There are some geopolitical issues that affect the price of oil," he added. "So for us to ratchet down the rhetoric when it comes to Iran, for example, and engage in tough, principled diplomacy, as I've called for, might calm the markets down." Before news of the Iranian war games, oil dropped over $4 a barrel Monday on profit taking and signals that Iran could be more flexible in negotiations over its nuclear program. US crude settled at $141.37 a barrel, down $3.92 and below Friday's low of $143.22. Brent crude settled at $141.87 a barrel, down $2.55.
|
