Iran denies test-firing missiles in Gulf

Iran has denied reports by state media that it test-fired long-range missiles during military exercises in the Gulf.

However a senior navy commander said Iran would launch missiles in the coming days.  Earlier the semi-official Fars news agency and other outlets reported that land-to-sea missiles had been fired.

The military exercises come at a time of increased tensions between the West and Iran over its nuclear ambitions. On Tuesday Iran threatened to close the Strait of Hormuz, a key oil export route, if new sanctions are imposed over its nuclear programme. This move could trigger military conflict with countries dependent on Gulf oil.

Iran's oil minister said crude prices will rise to more than $200 per barrel if foreign sanctions are imposed on the country's oil exports over its disputed nuclear work.

Tensions with the West have risen since the UN nuclear watchdog reported that Iran appears to have worked on designing an atomic bomb and may still be pursuing research to that end.

Iran denies this and says it needs nuclear technology to generate electricity to meet growing domestic demand.