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.

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