From Reuters, Wed Jul 9, 2008, 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.
....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....
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.
...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.
...Iran incentives if it will suspend uranium enrichment. Tehran has rejected the demand.
Iran has threatened to close the Strait of Hormuz, conduit for about 40 percent of globally traded oil, if it is attacked. The U.S. military says it will prevent any such action.
The war of words heightens risks that a misunderstanding or a minor clash in the Gulf, for instance, could get out of hand....
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