IRAN'S navy has test-fired a medium-range missile near the Strait of Hormuz — the route for one-sixth of the world's oil supply.
The blast came as part of a ten-day military exercise which could bring Iranian ships close to US navy vessels.
It is Iran's latest show of strength in the face of Western fears over its nuclear programme.
Iranian TV said the "state of the art" missile has been designed to evade radars.
Officials earlier warned they may close the Strait of Hormuz, cutting off oil exports, if the West imposes sanctions on Iran's oil shipments.
But Iranian military officials later backed off from the threat.
Meanwhile, Iranian scientists have produced the nation's first nuclear fuel rod, it emerged last night.
Iran's atomic energy agency said the rod was inserted into the core of Tehran's research nuclear reactor.
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