Iran tests missiles, vows to hit back if attacked

By Zahra Hosseinian and Fredrik Dahl

TEHRAN (Reuters) - Iran test-fired nine missiles on Wednesday and warned the United States and Israel it was ready to retaliate if they attacked the Islamic Republic over its disputed nuclear projects.

Washington, which says Iran seeks atomic bombs, told Tehran to halt further tests if it wanted the world to trust it. Iran, the world's fourth largest oil producer, insists its nuclear program aims only at generating electricity.

Rising tensions have rattled financial markets. Oil prices, which had slipped from record highs, rebounded about $2 a barrel after Wednesday's tests.

Speculation that Israel could strike Iran has mounted since its air force staged an exercise last month that U.S. officials said involved 100 aircraft. The United States has not ruled out military action if diplomacy fails to resolve the nuclear row.

"We warn the enemies who intend to threaten us with military exercises and empty psychological operations that our hand will always be on the trigger and our missiles will always be ready to launch," Revolutionary Guards air force commander Hossein Salami said, according to ISNA news agency.

In televised comments, he said thousands of missiles were ready to be fired at "specific and pre-determined targets". Missiles were shown soaring from desert launchpads, leaving long vapor trails.

Iran should "refrain from further missile tests if they truly seek to gain the trust of the world," White House spokesman Gordon Johndroe said.

MISSILE SHIELD

U.S. Secretary of State Condoleezza Rice suggested the tests justified an American missile shield plan with bases in eastern Europe that Russia strongly opposes.

"Those who say that there is no Iranian threat against which to be building missile defenses perhaps ought to talk to the Iranians about ... the range of the missiles that they test fired," Rice said in Bulgaria.

Russia, which has resisted U.S. calls for tougher U.N. sanctions on Iran, nevertheless says it shares concerns about Tehran's nuclear program. It responded to an Iranian rocket test in February by questioning Tehran's motives.

Italy joined criticism of Iran's latest missile tests.

"These are very dangerous missiles -- that's why the international community and not just Israel has an interest in blocking this escalation in a definitive way," Italian Foreign Minister Franco Frattini said in Ramallah, in the West Bank.

Iran's State Press TV said the "highly advanced" missiles tested by the Guards included a "new" Shahab 3 missile, which officials have said could reach targets 2,000 km (1,250 miles) away. Iran has said Israel and U.S. bases are in its range.

Some U.S. facilities across the Gulf are little more than 200 km from Iran's coast, putting them well within range of Iranian missiles, even if analysts question their accuracy.