Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts

Thursday, September 6, 2012

Massed US, UK, French navies for drill simulating breach of blocked Hormuz


DEBKAfile Special Report

The third US aircraft carrier, USS Stennis, is moving into place off the Iranian Gulf coast to lead a 12-day naval exercise of 25 nations on Sept 16-27, that will include a large-scale minesweeping drill simulating the breaching of the Strait of Hormuz against Iranian efforts to block oil passage through the strategic waterway. President Barack Obama may see Prime Minister Binyamin Netanyahu on the last day of the exercise. He hopes to present him with proof of US readiness for military action against Iran and demonstrate that an Israeli strike is superfluous.

The Stennis will join two other aircraft carriers, the USS Enterprise and USS Dwight D. Eisenhower, and their strike groups, which are already on operational duty off the coast of Iran, ready for the drill which kicks off in the strategic Strait of Hormuz on Sept. 16.

US officials say the Stennis will replace the Enterprise, but according to debkafile’s military and Washington sources all three carriers will remain in place opposite Iran in the Gulf region in the coming months. British and French warships are completing their transfer to new stations off Iran for the big exercise in which the Saudi and United Arab Emirates navies will also take part.

In addition to practicing tactics for keeping the Strait of Hormuz open, the exercise will simulate operations for destroying Iranian naval, air and missile bases in the Persian Gulf area.

This war game has three additional objectives, reported here by debkafile’s military sources:

1. To forestall an Israeli offensive against Iran, President Barack Obama wants to convince its leaders as well as Gulf rulers that the US-Western military option for disrupting Iran’s race to a nuclear bomb is deadly serious and ready to be exercised when the need arises – although determining “when the need arises” is the nub of the US-Israel dispute.

The exercise winds up Sept. 27, the day penciled in by the White House for Netanyahu to arrive for talks with President Obama and enable him to show his visitor that there is no need for Israel to act.

2.  The exercise is intended to convey the same message to Iran, that the US military option is real and genuine and will be exercised unless it halts its nuclear weapons program. The awesome might the US-led  coalition is capable of wielding against the Islamic Republic in a prospective war will be brought home to Iran’s military strategists, its Revolutionary Guards, Navy, and Air Force commanders, across their television screens, radar and spy satellites.

3. The drill will assemble massive strength on the spot in anticipation of an Israeli decision after all to cut down the Iranian nuclear menace on its own.. 

The Netanyahu government found further grounds for going it alone in certain key amendments inimical to Israel introduced in the new Democratic Party’s platform on the Middle East. It is due for endorsement by the convention in Charlotte, Ca. Wednesday, ahead of Obama’s confirmation as the party’s presidential nominee. Those amendments are hardly designed to revive Israel's trust in the president's Middle East policies.

The 2008 platform confirmed a “commitment which requires us to ensure that Israel retains a qualitative edge in the Middle East for its national security and its right to self-defense.”  The 2012 platform is amended to “[t]he administration has also worked to ensure Israel’s qualitative military edge in the region,” with no commitment to doing so in the future.

The Democratic platform has also dropped the Democrats’ affirmation of Jerusalem as Israel’s capital, leaving its status open for a negotiated peace with the Palestinians.

Also removed is the statement that Palestinian “refugees” should be settled in a future Palestinian state, not in Israel.”  The Obama White House has given itself a free hand to follow the Palestinian position on the refugee issue too like on Jerusalem (which he pointedly avoided visiting during his presidency.)

The new platform omits language characterizing Hamas as a terrorist group

The Israeli cabinet held a wide-ranging debate Tuesday, Sept. 4, on Iran after hearing briefings from the Military Intelligence, the Mossad, the Shin Bet and the Foreign Ministry’s Research Department on current Middle East crises, topped by Iran.  No bulletins were issued from the closed, classified proceedings.

Some of the participants described the information put before them as “worrying though not frightening.” They implied that the IDF’s level of preparations and alert has not been reduced, sharply refuting the misinformation opponents of direct Israeli action against Iran have circulated widely and planted in media headlines.

Wednesday, August 22, 2012

Is Israel planning EMP attack on Iran?



Tehran nearing 'zone of immunity' against conventional assault on nuclear sites

by F. Michael Maloof

WASHINGTON – Analysts say because Israel now believes diplomacy has failed to halt Iran’s nuclear program and the Jewish state’s very survival is at stake, Israelis have not ruled out a Jericho III missile launch to detonate a single electromagnetic pulse warhead at high altitude over central Iran.
The assessment is underscored by recent comments from Israeli officials that the Islamic republic is reaching its “zone of immunity” from conventional military attack on its nuclear sites.

In addition, analysts point out the use of long-range aircraft with refueling capability would be highly complex and pose many logistical problems. Israel also probably would not be allowed overflight permission from Turkey, Iraq or Saudi Arabia to reach its Iranian targets. Further, such an approach would minimize any element of surprise.

Meanwhile, top religious and political officials in Iran have issued repeated warnings they plan to obliterate the Jewish state.

Israel has made an assessment that Iran is on the threshold of a breakthrough to make a nuclear weapon. However,  some national security experts, including some in the United States, believe Iran is several years away from making such a device. And they say actual weaponization – the ability to miniaturize a nuclear bomb to fit on its nuclear-capable missiles – still is further off.

Debate over just how close Iran may be to making a nuclear weapon has raised the issue of the quality of the intelligence to back Israeli claims. Sources point to the example of the intelligence used to assess Iraq’s weapons of mass destruction that prompted the U.S. to attack Iraq in March 2003.

With Iran continuing its enrichment program, however, Israel and some Western countries are concerned that the amount of low-level uranium it has enriched could be enriched further to some 90 percent purity – which is what is required to make nuclear weapons.

U.S. officials don’t assess that Iran has reached that point.

Given that Iranian sites may be hardened against a conventional military attack, several Israeli and foreign sources believe that Israel has a nuclear device to create an electromagnetic pulse, or EMP, that would produce little radiation on the ground but could knock out all of Iran’s electronics.

Israel also is assessed to be able to launch nuclear-tipped ballistic missiles from its German-supplied Dolphin electric submarines that could carry a one-kiloton or more device and explode over Iran, effectively neutralizing all of Iran’s electronics.

This would include Iran’s command and control capabilities and its ability to launch ballistic missiles in retaliation to a pre-emptive Israeli attack on Iran’s nuclear sites, which Western intelligence has assessed is a cover to make nuclear weapons.

Sources say that an Israeli EMP attack also would effectively halt Iran’s ability to launch its forces to block the Strait of Hormuz, which the Islamic republic has threatened to do if it is attacked, along with targeting a number of U.S. military facilities in the region, as well as Israel.

An electromagnetic pulse occurs following a nuclear weapon exploded at a high altitude, creating a very strong electrical field that can overwhelm all electronics, knocking out or seriously damaging any electronic devices connected to power sources or antennas, including communications equipment, computers, electrical appliances, automobile and aircraft ignitions systems. Experts say it also can adversely affect a person’s implanted heart pacemaker device.

The effect from an EMP would be very similar to electronics in a near lightning strike or a solar storm which also can affect electronics but on a lesser scale than a pulse from a high-altitude nuclear explosion.

Another scenario discussed among some Israeli leaders is the detonation of an EMP over the entire Middle East, including Israel, whose military infrastructure has been hardened against such attacks.

This would allow Israel to fly its jets directly to Iran without concerns about detection. Though it would also turn out the lights in Israel, sources there say the Jewish state could bring power back for civilians in a matter of days. A detonation at an altitude of up to 250 miles not only would affect all electronics in Iran but could damage electrical systems from the Middle East and much of Europe, these experts add. Such an EMP event also would dramatically affect all U.S. military facilities in the region.

An EMP attack on the United States, for example, from a 30-kiloton nuclear weapon exploded at an altitude of 62 miles, or 100 kilometers, effectively would knock out 70 percent of electrical systems up to a thousand miles in every direction. A similar explosion at a higher altitude of some 250 miles would virtually affect all electronics from Boston to Los Angeles and from Chicago to New Orleans, according to experts.

Consequently, a detonation limited to Iran would have to be at a much lower altitude to avoid such far-ranging effects on the electronics in the region and beyond.

According to U.S. intelligence sources, Israel not only possesses nuclear devices of one kiloton or more which would be sufficient to create an effective result from an electromagnetic pulse but has Jericho III missiles which it tested in 2009 capable of carrying nuclear payloads some 2,500 miles. The distance between Israel and Iran is approximately 1,000 miles.

U.S. sources knowledgeable about ways to “harden” buildings and other facilities against an EMP attack say business in this area has been booming throughout the Middle East for months.

In recent weeks, U.S. intelligence officials have told WND/G2Bulletin that they have detected Israel handling propellants for its Jericho missiles.

The prospect that Israel has this capability was first made known by an ex-CIA case officer, Chet Nagle, at a Capitol Hill EMPact America press conference held in Washington, D.C., in November 2011.

A similar prospect was outlined in a Nov. 10, 2011, Front Page Magazine article, “Connecting the Nuclear Dots on Iran,” written by Kenneth Timmerman who is the president of the Foundation for Democracy in Iran and maintains close ties with the Iranian opposition.

“Any Israeli attack on Iran is sure to make of Israel an international pariah, Nagle argues,” Timmerman said in quoting Nagle in a conversation. “Plus, the likelihood of success – that is, in destroying or disabling all of Iran’s nuclear weapons capabilities (by conventional means) so they have nothing to launch on the morning after the attack – is low.

“If you’re going to go to all that trouble and be a pariah,” Timmerman quoted Nagel as saying in their conversation, “why not take one of those Jericho missiles, and detonate it 300 miles above the surface and deliver an EMP strike on Iran? That would stop their clock – if it’s electric – as well as all those centrifuges and everything else. Then the Greens can take over the country and we can go back in and rebuild the grid.”

The prospect for this doomsday approach has arisen due to a comment made by Israeli Defense Minister Ehud Barak last February that Iran was entering a “zone of immunity” from military attack. Other officials in recent days have suggested that such a “zone of immunity” will be reached before the end of the year.

“The world, including the current U.S. administration, understands and accepts that Israel necessarily views the threat differently than they do, and that ultimately, Israel is responsible for taking the decisions related to its future, its security and its destiny,” Barak said.

Given that this “zone of immunity” could be reached before the end of the year, there has been increasing speculation in recent days that Israel may launch an attack prior to the U.S. presidential elections in an effort to force the U.S. to act. Sources say that the Israelis have assessed that if President Obama is re-elected, he may want to continue down the path of negotiating with the Iranians.

The sources add that by attacking prior to the U.S. elections in November, the U.S. then will have no choice but to back Israel due to the U.S. commitment to ensure Israel’s security. They add that it also will help Obama’s re-election efforts.

Iran, however, insists that its nuclear development program is for peaceful purposes as a signatory to the Nuclear Non-Proliferation Treaty and as a member of the International Atomic Energy Agency. Under the terms of the NPT, Iran has the “right” to enrich uranium as it is doing. Iran has enriched up to 20 percent, which is more than enough for refueling its nuclear reactors but is considered an acceptable level for medical research.

As early as 2005, Iranian Supreme Leader Ayatollah Ali Khamenei issued a fatwa, or religious decree, that is a legal pronouncement in Islam, that the production, stockpiling and use of nuclear weapons are forbidden under Islam and that the Islamic republic “shall never acquire these weapons.” Last February, Khamenei reiterated his 2005 fatwa.

“The Iranian nation has never pursued and will never pursue nuclear weapons,” he said. “There is no doubt that the decision makers in the countries opposing us know well that Iran is not after nuclear weapons because the Islamic republic, logically, religiously and theoretically, considers the possession of nuclear weapons a grave sin and believes the proliferation of such weapons is senseless, destructive and dangerous.”

Sources say that the edict from Khamenei is considered more than a fatwa, given that he not only is an ayatollah but also the supreme leader of Iran. For that reason, what he said is considered a hukm, or decree of the Supreme Jurisprudent, or Vali-yi Faqih, that determines the legal framework of the Islamic republic in accordance with Islamic law.

Thursday, August 16, 2012

Iran finds ways to sidestep sanctions



High oil prices and complicated financial schemes have helped Iran survive sanctions, analysts and officials have said. 

This month, U.S. authorities accused Standard Chartered of concealing about 60,000 transactions with Iranian clients from U.S. regulators, violating sanctions against the Iranian government. StanChart said that “well over 99.9 percent” of its transactions with Iran complied with the U-turn regulations that govern the clearance of dollars from Iran in the U.S.

The Standard Chartered case comes weeks after a U.S. Senate panel released a 335-page report describing a decade of compliance failures by HSBC, Europe’s biggest bank. An outside audit by Deloitte showed that 25,000 transactions totalling more than $19.4bn involved Iran. Of those, as many as 90 percent passed through the bank’s U.S. accounts with no disclosure of ties to Iran, according to the Senate report.

Those cases highlight the measures the Iranian government has been able to take to survive the sanctions.

Businessmen have found myriad ways to live with the financial restrictions. They use trusted money changers and an old financial transfer system known as hawala, even though these deals are costly.

“It is becoming increasingly difficult as our costs are going up and we have to give more discounts to customers,” said one Europe-based Iranian businessman with links to the Islamic Republic.

China has played a large role. Chinese banks are more welcoming than other Asian lenders to Iranian businessmen and still open letters of credit. Iran’s government seems to have convinced China and other Asian oil customers to accept barter deals for oil sales.

Meanwhile, Iranian businessmen say small European banks, notably those in crisis-hit economies, still help with financial transactions to Iran through foreign nationals and money transactions to countries such as Turkey, Ukraine, Azerbaijan and some Persian Gulf Arab Gulf states. Businessmen, however, refuse to reveal the names of the European banks involved.

It is difficult for the U.S. to track transfers. Many Iranian expatriates – who are estimated to number at least 2m worldwide – hold dual nationality. They may be tempted by the high commissions on offer from the Iranian government or businessmen to help them circumvent sanctions.

Transferring money this way takes time. It can lead to delays in imports of raw materials for factories and prices have risen. But while Iran’s currency has lost nearly half its value against the dollar over the past year and inflation has shot up 23 percent, according to official figures, the average Iranian consumer has yet to notice shortages. Supermarkets and retail shops are still fully stocked with domestic and imported foods as well as luxury goods.
 
High oil prices help, too. As long as oil stays at about $100 a barrel, Iranian observers and western diplomats in Tehran say, then Iran should be able to continue its plans.

Wednesday, July 18, 2012

If Damascus falls, Israel and its gas fields feared threatened


DEBKAfile  Exclusive Report

Syrian military forces were gathered in Tuesday, July 17, to save Damascus.

Tanks and armored vehicles were positioned in strength in the capital’s center and around government buildings. However, the noise and fury of battle in the Syrian capital Tuesday, July 17, were produced, debkafile’s military sources report, by six battalions of Bashar Assad’s loyal Allawite militia in clashes with the rebels who captured the two southern suburbs of Meidan and Tadmon Monday. They are trying to pound the enemy into extinction before its forces reach central Damascus.

The two beleaguered districts are home to a quarter of the capital’s 1.8 million inhabitants.

The Syrian general staff has withdrawn its command headquarters to a well-fortified complex on Shuhada Street in the capital’s center.

If Damascus falls and Assad is cornered, the entire region stands in peril of wider repercussions, because neither he nor Tehran will take defeat lying down.

debkafile’s military sources report their campaign will be paced and scaled according to the momentum of the Syrian rebels’ advance on Bashar Assad’s door-step, which could be drawn out and bloody.

On the Iranian-Hizballah list are Middle East oil installations as well as Israeli, US, Turkish, Saudi and Jordanian strategic targets.

Saturday, the Cypriot police captured a Hizballah terrorist before he could blow up an Israeli El Al flight and tourist buses in Limassol.

Tehran is feared to be focusing on the Mediterranean island as part of a plot to set Israel’s Mediterranean gas field Tamar on fire. The field is 80 kilometers west of Haifa
It would be a spectacular curtain-raiser for the closure of the Strait of Hormuz and for strikes against Gulf oil installations.

Navy Commander, Maj. Gen. Ram Rothberg called last week for an extra five warships and submarines to safeguard Israel’s burgeoning gas fields at the cost of a billion dollars.

The Syrian ruler has stoked up the menace by moving out of storage missiles and shells armed with mustard gas, sarin nerve gas and cyanide stockpiled for years.

They are on operational readiness at Homs, Latakia and Aleppo and, according to Nawaf Fares,
Syrian ex-ambassador to Iraq who defected to the opposition, may already have been used against rebel concentrations.

The longer the battle for Damascus goes on, the greater the danger that the Syrian ruler will release his poison-tipped missiles against Israel, Turkey and Jordan.

Friday, July 13, 2012

Two more US carriers, dozens of mini-subs rushed to Hormuz



DEBKAfile Special Report
 
As Russia and NATO continued to boost their military strength in the eastern Mediterranean, debkafile's military sources report substantial US reinforcements, led by the USS Dwight D. Eisenhower aircraft carrier, are being rushed to the Persian Gulf opposite Iran, with dozens of unmanned underwater craft for destroying mines.

The USS John C. Stennis arrives in August, raising the number of American aircraft carriers in waters off Iran to four including the USS Enterprise and the USS Abraham Lincoln, with the French Charles de Gaulle due soon to make up a fifth.

The Eisenhower, which reached its new position in the first week of July, operates under the joint commands of the US Sixth (Mediterranean) and Fifth (Gulf) Fleets.

Thursday, July 12, American military officials announced that the US is also dispatching to the Persian Gulf dozens of tiny, unmanned SeaFox submersibles that can detect and destroy mines if strewn by Iran to block the strategic Strait of Hormuz, the chokepoint for transporting one-fifth of the world’s oil.

About 4 feet long, they each carry an underwater television camera, homing sonar and an explosive charge.

There are now additionally eight American minesweepers in the Persian Gulf as well as the USS Ponce, a platform for the special forces, helicopters and warships there to fight off Iranian marine units attempting to plant mines in the vital waterway.

debkafile's military sources say that Washington decided to expand its military deployment in the area after concluding, in consultation with French and British naval experts, that Iran is short of the military strength and sophisticated measure for completely sealing off the Strait of Hormuz to all sea traffic, especially oil tankers.

All the Iranians can do is plant enough underwater mines to impede traffic and slow it down.

The new, bolstered US deployment in the Persian Gulf, the Red Sea and the Mediterranean is on the ready for immediate action against any Iranian military threat. "If Iran starts spreading underwater mines in international waterways, i.e., the Strait of Hormuz, it will find American forces ready to dismantle them on the spot," said a Western military source.

In any case, said the source, a slowdown of oil traffic through Hormuz won’t have an immediate impact on the world oil market or prices. "The world has enough reserve oil in storage to supply its needs for six full months,” said the source. 

Thursday, July 12, 2012

U.S. moving submersibles to Persian Gulf to oppose Iran



WASHINGTON — The Navy is rushing dozens of unmanned underwater craft to the Persian Gulf to help detect and destroy mines in a major military buildup aimed at preventing Iran from closing the strategic Strait of Hormuz in the event of a crisis, U.S. officials said.

The tiny SeaFox submersibles each carry an underwater television camera, homing sonar and an explosive charge. The Navy bought them in May after an urgent request by Marine Gen. James Mattis, the top U.S. commander in the Middle East.

Each submersible is about 4 feet long and weighs less than 100 pounds. The craft are intended to boost U.S. military capabilities as negotiations with Iran over its nuclear program appear to have stalled. Three rounds of talks since April between Iran and the five countries in the United Nations Security Council plus Germany have made little progress.

Some U.S. officials are wary that Iran may respond to tightening sanctions on its banking and energy sectors, including a European Union oil embargo, by launching or sponsoring attacks on oil tankers or platforms in the Persian Gulf. Some officials in Tehran have threatened to close the narrow waterway, a  choke point for a fifth of the oil traded worldwide.

The first of the SeaFox submersibles arrived in the Gulf in recent weeks, officials said, along with four MH-53 Sea Dragon helicopters and four minesweeping ships, part of a larger buildup of U.S. naval, air and ground forces in the region aimed at Iran.

The U.S. already has sent two aircraft carriers and a squadron of F-22 fighters to the Persian Gulf, and is keeping two U.S. army brigades in Kuwait. Though much of the buildup has been publicly acknowledged by the Pentagon, the deployment of the submersibles has not been publicly disclosed, apparently to avoid alerting Iran.

The SeaFox is small enough to be deployed from helicopters and even small rubber boats, but it also can be dropped off the back of a minesweeper. It is controlled by a fiber optic cable and sends live video back to a camera operator.

It can be used against floating or drifting mines, which Iran has used in the past. It operates up to 300 meters deep, and moves at speeds of up to six knots. But the $100,000 weapon is on a what amounts to a suicide mission. The “built-in, large caliber shaped charge” it carries destroys the mine but also the vehicle itself.

Monday, July 2, 2012

Iran threatens Israel; new EU sanctions take force



By Yeganeh Torbati

(Reuters) - Iran announced missile tests on Sunday and threatened to wipe Israel "off the face of the earth" if the Jewish state attacked it, brandishing some of its starkest threats on the day Europe began enforcing an oil embargo and harsh new sanctions.

The European sanctions - including a ban on imports of Iranian oil by EU states and measures that make it difficult for other countries to trade with Iran - were enacted earlier this year but mainly came into effect on July 1.

They are designed to break Iran's economy and force it to curb nuclear work that Western countries say is aimed at producing an atomic weapon. Reporting by Reuters has shown in recent months that the sanctions have already had a significant effect on Iran's economy.

Israel says it could attack Iran if diplomacy fails to force Tehran to abandon its nuclear aims. The United States also says military force is on the table as a last resort, but U.S. officials have repeatedly encouraged the Israelis to be patient while new sanctions take effect.

Washington said the EU's oil ban might force Tehran to give ground at the next round of nuclear talks, scheduled for this week in Istanbul.

Announcing three days of missile tests in the coming week, Revolutionary Guards General Amir Ali Hajizadeh said the exercises should be seen as a message "that the Islamic Republic of Iran is resolute in standing up to ... bullying, and will respond to any possible evil decisively and strongly."

Any attack on Iran by Israel would be answered resolutely: "If they take any action, they will hand us an excuse to wipe them off the face of the earth," said Hajizadeh, head of the Guards' airborne division, according to state news agency IRNA.

The missile tests will target mock-ups of air bases in the region, Hajizadeh said, adding that its ability to strike U.S. bases in the Gulf protects Iran from U.S. support for Israel.

"U.S. bases in the region are within range of our missiles and weapons, and therefore they certainly will not cooperate with the regime (Israel)," he told IRNA.

Iran has repeatedly unnerved oil markets by threatening reprisals if it were to be attacked or its trade disrupted.

The threat against the Jewish state echoed words President Mahmoud Ahmadinejad spoke in 2005, saying Israel "must be wiped off the page of time" - a phrase often translated as "wiped off the map" and cited by Israel to show how allowing Iran to get nuclear arms would be a threat to its existence.

The EU ban on Iranian oil imports directly deprives Iran of a market that bought 18 percent of its exports a year ago. The sanctions also bar EU companies from transporting Iranian crude or insuring shipments, hurting its trade worldwide.

"They signal our clear determination to intensify the peaceful diplomatic pressure," British Foreign Secretary William Hague said in a statement.

The EU sanctions come alongside stringent new measures imposed by Washington this year on third countries doing business with Iran. The United States welcomed the EU sanctions as an "essential part" of diplomatic efforts "to seek a peaceful resolution that addresses the international community's concerns about Iran's nuclear program."

White House spokesman Jay Carney said he hoped the sanctions would force Tehran to make concessions in technical-level talks with six world powers later this week.

MALICIOUS POLICIES

"Iran has an opportunity to pursue substantive negotiations, beginning with expert level talks this week in Istanbul, and must take concrete steps toward a comprehensive resolution of the international community's concerns with Iran's nuclear activities," Carney said in a statement.

The United Arab Emirates and Bahrain - foes of Iran which face it across the oil-rich Gulf - announced their own joint air force exercises on Sunday which they said would take "several days," their state news agencies reported.

In three rounds of talks between Iran and the United States, Russia, China, Britain, France and Germany, the Western powers have demanded Tehran halt high-grade uranium enrichment, ship out all high-grade uranium and close a key enrichment facility.

The talks lost steam at the last meeting in Moscow last month and there was not enough common ground for negotiators to agree whether to meet again. Officials - but not political decision-makers - meet in Turkey on Tuesday.

Washington sees the sanctions and talks as a potential way out of the standoff to avert the need for military action, but has not said it would block Israel from attacking Iran.

Tehran says it has a right to peaceful nuclear technologies and is not seeking the bomb. It accuses nuclear-armed states of hypocrisy. Officials said they were taking steps to reduce the economic impact of the new sanctions.

"We are implementing programs to counter sanctions and we will confront these malicious policies," Mehr news agency quoted Iranian central bank governor Mahmoud Bahmani as saying.

Bahmani has struggled to prevent a plunge in the value of the rial currency and steadily rising inflation as the sanctions have taken effect. He said the effects of the sanctions were tough but that Iran had built up $150 billion in foreign reserves to protect its economy.

Oil Minister Rostam Qasemi said oil importing countries would be the losers if the sanctions lead to price rises.

"All possible options have been planned in government to counter sanctions," Qasemi said on the ministry's website.

Last Friday, another Revolutionary Guards commander, Ali Fadavi, said Iran would equip its ships in the Strait of Hormuz - the neck of the Gulf and a vital oil transit point - with shorter-range missiles.