Test of strength

Iran's top authority, Supreme Leader Ayatollah Ali Khomeini, said the Islamic Republic would target United States interests throughout the world if it came under attack over its disputed nuclear programme.

His comments came after an Iranian naval commander said Revolutionary Guards had test-fired missiles that could sink "big warships" in the Gulf, where a second US aircraft carrier is heading.

Washington said it did not see that as a direct threat to US ships and that it planned to stick to firm diplomacy, not go to war with the Islamic Republic.