Iran threatens to shut Gulf shipping lanes

Iran has warned it is ready to shut down the shipping lanes of the Gulf as it boasted of a new missile system designed to prolong war at sea.

The fusillade of belligerence fired at major powers came as Tehran was poised to reject demands to curtail its nuclear programme. The country's chief nuclear negotiator, Saeed Jalili, spoke to Javier Solana, the EU's foreign affairs supremo, to tender a belated response to an offer of compensation in return for a suspension of its uranium production.

Officials in Tehran said the country was not yet ready to accept the core requirement that its suspect research programme is abandoned.

In advance of the discussion Iran announced it had developed a "unique" new surface-to-ship missile with a range of 200 miles. General Mohammad Ali Jafari, the commander of the Islamic Revolutionary Guard Corp (IRGC) hinted the missile would boost Iran's defensive capabilities in the Gulf, the key oil artery where it regularly contests the dominance of the US Navy.

He warned that Iran was ready to force the closure of the Gulf, a development that would push oil prices to levels. He said: The possibility of closing the Strait of Hormuz easily and on an unlimited basis.

Gen Jafari said the development of the missile constituted a blow for unnamed enemies, who had plans for a short war in the Gulf. He said: We will prolong it.

Washington has warned it will intensify pressure for tough new sanctions on Iran if it does not accept an offer of nuclear technology and trading concessions in return for a suspension of research.

It is clear that the government of Iran has not complied with the international community's demand to stop enriching uranium and isn't even interested in trying, said Richard Grenell, spokesman for the US mission to the United Nations. They leave the Security Council no choice but to increase the sanctions, as called for in the last resolution passed.

Iranian officials declared that the country's determination to maintain its own research capacity would limit the scope of Mr Jalili's discussion with Solana. During the conversation, the freeze-for-freeze issue will not be discussed. Like the last talks [in Geneva], they will only discuss the common points of the two packages, the senior Iranian official said.

Iran is under pressure across a range of diplomatic fronts. Even its allies are not the strategic redoubts of the past. Syrian president Bashar al-Assad, who has opened talks with Israel, warned Tehran of the dangers of sticking to the path of confrontation during a weekend visit.