Iran accuses US and EU of trying to wage 'economic war'

IRANIAN OFFICIALS have struck a defiant posture in response to a proposed oil embargo by the European Union, calling the intensified…

IRANIAN OFFICIALS have struck a defiant posture in response to a proposed oil embargo by the European Union, calling the intensified efforts to halt Iran’s nuclear programme, including new sanctions by the United States, tantamount to “an economic war” and vowing to conduct a new round of military drills near the Strait of Hormuz.

The strong words came after a series of escalating military and diplomatic responses by Iran in recent weeks amid growing pressure from western powers. On Tuesday, Iran warned the US that it would take action if an American aircraft carrier that left the Persian Gulf through the Strait of Hormuz were to return. The US has said that the threats would not cause it to alter military deployments.

The Iranian military, fresh off 10 days of naval exercises near the strait that ended this week, vowed to hold a new round of war games soon. The defence minister, Brig Ahmad Vahidi, in comments reported by the semi-official Fars news agency, said the military’s exercises would be “its greatest naval war games” and would occur “in the same region in the near future”. Britain, adding its voice to the chorus of diplomatic responses, cautioned that any attempt by Iran to close the strait would be “illegal and unsuccessful”. The comments, by UK defence secretary Philip Hammond, were delivered during his first visit to the Pentagon since he became Britain’s defence minister in the autumn and appeared to indicate strong resolve by the West to keep the strategically important strait open for trade.

“It is in all our interests that the arteries of global trade are kept free, opening and running,” Mr Hammond said. The official news agency Irna quoted one senior member of the Iranian parliament as saying that pressure from “bullying nations” made the country “more resilient”. Press TV, an official Iranian news site, headlined its report with a warning against “sabre rattling” by Britain.

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Relations between Iran and the UK deteriorated after protesters stormed the British embassy in Tehran in November. Britain responded by downgrading relations to their lowest level in 20 years, expelling Iranian diplomats from Britain and ordering the Iranian embassy in London to shut.

Mixed in with Iran’s bluster on Thursday was tacit acknowledgment of the potential economic hardships that stronger sanctions could cause in Iran, where the economy is heavily reliant on oil exports, including through the Strait of Hormuz.

Iran will “weather the storm”, foreign minister Ali Akbar Salehi said, adding he was “not concerned at all” about the imminent ban on its oil by the European Union. The economic minister, Shamseddin Hosseini, likened the ban to an economic war.

“Iran, with divine assistance, has always been ready to counter such hostile actions, and we are not concerned at all about the sanctions,” Mr Salehi said at a news conference in Tehran. “Just as we have weathered the storm in the last 32 years with the hold of God and efforts that we make, we will be able to survive this as well.”

But Mr Salehi also said that Iran would like to reopen talks with the West on its nuclear programme, suggesting that renewed talks be held in Turkey. He appeared at the news conference with the Turkish foreign minister, Ahmet Davutoglu, who said that Iran had responded favourably to the notion of resuming negotiations. That was interpreted by some in Europe as an effort by Iran to buy time to continue its programme.

The European Union's foreign policy chief, Catherine Ashton, has been waiting for Iran to respond formally to an October 2011 letter suggesting new rounds of negotiations, which broke off a year ago when Iran presented preconditions, including a lifting of sanctions.– ( New York Timesservice)