· Vow comes on second day of ballistic missile tests
· Leaders threaten to shut vital oil route if attacked
The US vowed to defend Israel and its other allies in the Gulf, as Iran carried out its second ballistic missile test in two days yesterday.
As the situation worsened in the Gulf, the French oil company Total said it would pull out of a large-scale investment in an Iranian gas field - a serious blow to Tehran, which is keen to exploit its gas reserves, and a victory for the Bush administration, which has been seeking to isolate the Iranian government.
A spokeswoman for the company said it was too risky to invest in Iran at present.
Oil prices resumed climbing yesterday as Opec said it would not be able to replace any shortfalls if Iran were attacked and took its crude supplies off the market.
The second volley of missiles was launched by the Iranian Revolutionary Guard Corps, a politicised militia parallel to the regular army. The Pentagon, whose surveillance satellites and other technology track such launches, yesterday confirmed the second batch of missile tests, which were carried out at night.
Israel responded to the tests with a show of strength of its own, putting on display at the country's international Ben-Gurion airport its new spy and early warning plane, which can reach Iran. Israel also hinted that it would not hesitate to attack Iran's nuclear facilities.
According to official Iranian reports, the weapons tested included long-range Shahab-3 missiles, capable of reaching Israel and US bases in the region. The reports said the missiles had undisclosed special features. But the Pentagon insisted they were only short-range ones.
The Revolutionary Guard commander, Ali Jafari, referring to the second tests, was quoted as saying: "The manoeuvre brings power to the Islamic republic of Iran and is a lesson for its enemies."
Iran has threatened to shut the Strait of Hormuz, a vital route for Gulf oil exports, if it is attacked. Iran's state media said exercises yesterday involved divers and speedboats, as well as the launch of a high-speed torpedo called Hout. The missile tests and sea operations were an explicit response to Israeli manoeuvres last month, in which war planes were reported to be rehearsing air strikes against Iran's nuclear facilities.
The US secretary of state, Condoleezza Rice, made it clear yesterday that the US would step in if Israel were attacked.
http://www.guardian.co.uk/world/2008/jul/11/iran.israelandthepalestinians1
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