Israeli air force rehearses attack on Iran

International division on Iran sanctions, Japan calls for peaceful solution

Iran says ready to negotiate on nuclear incentives

US officials say a major military exercise carried out by Israel earlier this month seemed to be a practice for a potential strike against Iran's nuclear facilities, American media reported.

More than 100 Israeli F-16 and F-15 fighter jets took part in maneuvers over the Eastern Mediterranean and Greece in the first week of June to gear the military for long-range strikes and demonstrate Israel's serious concern over Iran's nuclear ambitions, the New York Times cited US officials as saying.

A Pentagon official briefed on the exercise said one goal was to send a message that the Jewish state was prepared to act militarily if diplomatic efforts failed to halt Tehran's enrichment of uranium.

"They wanted us to know, they wanted the Europeans to know, and they wanted the Iranians to know," the Pentagon official was quoted as saying. "There's a lot of signaling going on at different levels."

An Israeli official would neither confirm nor deny the exercise earlier this month or say whether the country was specifically preparing for action against Iran.

Iran has shown signs that it is taking an Israeli attack threat seriously, by beefing up air defenses and increasing patrols, the Times reported.

"They are clearly nervous about this and have their air defense on guard," a Bush administration official was quoted as saying of the Iranians.

The Greek Air Force's central command confirmed that it had taken part in "joint training exercises" with Israel off the southern Mediterranean island of Crete.

The source, who requested anonymity, was confirming to AFP the substance of a New York Times report citing US officials which said a major military exercise carried out by Israel earlier this month seemed to be a test-run for any potential strike against Iran's nuclear facilities.

The maneuvers took place on May 28 and June 12, Greek officials said.

According to the Athens News Agency (ANA), the operation involved simulated aerial combat, attacks on ground targets, aerial refueling and search and rescue.

Iran warned Israel of a "strong blow" in retaliation for any military action against the Islamic Republic.

"If enemies, especially Israelis and their supporters in the United States, would want to use a language of force, they should rest assured that they will receive a strong blow in the mouth," senior cleric Ayatollah Ahmad Khatami said in his Friday prayers sermon.

Several American officials said the Israeli exercise appeared to be an effort to develop the military’s capacity to carry out long-range strikes and to demonstrate the seriousness with which Israel views Iran’s nuclear program, the New York Times newspaper reported.

More than 100 Israeli F-16 and F-15 fighters participated in the maneuvers, which were carried out over the eastern Mediterranean and over Greece during the first week of June, American officials said.

The exercise also included Israeli helicopters that could be used to rescue downed pilots. The helicopters and refueling tankers flew more than 900 miles, which is about the same distance between Israel and Iran’s uranium enrichment plant at Natanz, American officials said.

Israeli officials declined to discuss the details of the exercise. A spokesman for the Israeli military would say only that the country’s air force “regularly trains for various missions in order to confront and meet the challenges posed by the threats facing Israel.”

But the scope of the Israeli exercise virtually guaranteed that it would be noticed by American and other foreign intelligence agencies. A senior Pentagon official who has been briefed on the exercise, and who spoke on condition of anonymity because of the political delicacy of the matter, said the exercise appeared to serve multiple purposes.

One Israeli goal, the Pentagon official said, was to practice flight tactics, aerial refueling and all other details of a possible strike against Iran’s nuclear installations and its long-range conventional missiles.

A second, the official said, was to send a clear message to the United States and other countries that Israel was prepared to act militarily if diplomatic efforts to stop Iran from producing bomb-grade uranium continued to falter.

“They wanted us to know, they wanted the Europeans to know, and they wanted the Iranians to know,” the Pentagon official said. “There’s a lot of signaling going on at different levels.”

Several American officials said they did not believe that the Israeli government had concluded that it must attack Iran and did not think that such a strike was imminent.

Shaul Mofaz, a former Israeli defense minister who is now a deputy prime minister, warned in a recent interview with the Israeli newspaper Yediot Aharonot that Israel might have no choice but to attack. “If Iran continues with its program for developing nuclear weapons, we will attack,” Mr. Mofaz said in the interview published on June 6, the day after the unpublicized exercise ended. “Attacking Iran, in order to stop its nuclear plans, will be unavoidable.”

But Mr. Mofaz was criticized by other Israeli politicians as seeking to enhance his own standing as questions mount about whether the embattled Israeli prime minister, Ehud Olmert, can hang on to power.

Israeli officials have told their American counterparts that Mr. Mofaz’s statement does not represent official policy. But American officials were also told that Israel had prepared plans for striking nuclear targets in Iran and could carry them out if needed.

Iran has shown signs that it is taking the Israeli warnings seriously, by beefing up its air defenses in recent weeks, including increasing air patrols. In one instance, Iran scrambled F-4 jets to double-check an Iraqi civilian flight from Baghdad to Tehran.

“They are clearly nervous about this and have their air defense on guard,” a Bush administration official said of the Iranians.

Any Israeli attack against Iran’s nuclear facilities would confront a number of challenges. Many American experts say they believe that such an attack could delay but not eliminate Iran’s nuclear program. Much of the program’s infrastructure is buried under earth and concrete and installed in long tunnels or hallways, making precise targeting difficult. There is also concern that not all of the facilities have been detected. To inflict maximum damage, multiple attacks might be necessary, which many analysts say is beyond Israel’s ability at this time.

But waiting also entails risks for the Israelis. Israeli officials have repeatedly expressed fears that Iran will soon master the technology it needs to produce substantial quantities of highly enriched uranium for nuclear weapons.

Iran is also taking steps to better defend its nuclear facilities. Two sets of advance Russian-made radar systems were recently delivered to Iran. The radar will enhance Iran’s ability to detect planes flying at low altitude.

Mike McConnell, the director of national intelligence, said in February that Iran was close to acquiring Russian-produced SA-20 surface-to-air missiles. American military officials said that the deployment of such systems would hamper Israel’s attack planning, putting pressure on Israel to act before the missiles are fielded.

For both the United States and Israel, Iran’s nuclear program has been a persistent worry. A National Intelligence Estimate that was issued in December by American intelligence agencies asserted that Iran had suspended work on weapons design in late 2003. The report stated that it was unclear if that work had resumed. It also noted that Iran’s work on uranium enrichment and on missiles, two steps that Iran would need to take to field a nuclear weapon, had continued.

In late May, the International Atomic Energy Agency reported that Iran’s suspected work on nuclear matters was a “matter of serious concern” and that the Iranians owed the agency “substantial explanations.”

Over the past three decades, Israel has carried out two unilateral attacks against suspected nuclear sites in the Middle East. In 1981, Israeli jets conducted a raid against Iraq’s nuclear plant at Osirak after concluding that it was part of Saddam Hussein’s program to develop nuclear weapons. In September, Israeli aircraft bombed a structure in Syria that American officials said housed a nuclear reactor built with the aid of North Korea.

The United States protested the Israeli strike against Iraq in 1981, but its comments in recent months have amounted to an implicit endorsement of the Israeli strike in Syria.

Pentagon officials said that Israel’s air forces usually conducted a major early summer training exercise, often flying over the Mediterranean or training ranges in Turkey where they practice bombing runs and aerial refueling. But the exercise this month involved a larger number of aircraft than had been previously observed, and included a lengthy combat rescue mission.

Much of the planning appears to reflect a commitment by Israel’s military leaders to ensure that its armed forces are adequately equipped and trained, an imperative driven home by the difficulties the Israeli military encountered in its Lebanon operation against Hezbollah.

“They rehearse it, rehearse it and rehearse it, so if they actually have to do it, they’re ready,” the Pentagon official said. “They’re not taking any options off the table.”

Russia's foreign minister said there was no proof Iran is developing nuclear weapons and warned unilateral action against the country risked repeating the mistakes of the invasion of Iraq.

"We have been repeatedly asking our American and Israeli colleagues, who insist that Iran ... is engaged in making a nuclear bomb, to provide factual information to those assertions. So far we have seen none," Sergei Lavrov said in a speech in Moscow. "The same conclusion has been made by the International Atomic Energy Agency," he added.

Responding to a warning earlier this month by Israeli Deputy Prime Minister Shaul Mofaz that Israel could attack Iranian installations if it refused to halt its nuclear program, Lavrov urged Israel to act responsibly.

"We must be responsible for our policies, especially policies which touch upon the ... territorial integrity of others countries. They must be based on facts," he said.

"You remember the facts, the so-called facts, which were presented before Iraq was attacked," he said, in reference to false intelligence used to justify the US-led 2003 invasion of Iraq.

In Brussels, the European Union agreed on the need to sharpen sanctions on Iran — possibly targeting the oil and gas sectors in what would mark Europe’s strongest punishments yet to discourage Tehran’s nuclear ambitions.

In line with such a move, British Prime Minister Gordon Brown said the EU will join Britain in freezing the assets of Iran’s largest bank.

“We will take any necessary action so that Iran is aware of the choice it needs to make,” said Brown at a London news conference with President Bush.

The EU’s tougher stance follows Iran’s latest refusal to accept an economic incentives in exchange for halting uranium enrichment, which Tehran insists is for energy-producing reactors but Western nations and others fear could be used to develop nuclear weapons.

Washington’s European allies have been far more cautious on punishing Iran because of deep business and energy ties. But the oil and gas move — which is not yet final — would strike directly at Iran’s economic base and its plans to expand petroleum exports to Europe at a time of record-high prices.

Brown warned that European nations will start the process of oil and gas sanctions if Iran continues to refuse to halt enriching uranium.

“Action will start today in a new phase of sanctions on oil and gas,” he said.

Brown also said Britain will freeze the assets of Iran’s Bank Melli — a separate and largely symbolic clampdown on the Mideast nation. He said that the European Union would join in the freeze.

But aiming at Iran’s vast oil and gas industries would be a much more significant blow than the banking sanctions.

Iran’s stumbling economy — burdened by chronic inflation and unemployment — desperately needs the foreign currency from its fuel exports, which are still weighted toward Western markets despite efforts to cater to growing Asian demand.

At the same time, Iran relies on foreign investment and technology in its oil and gas fields. More than 80 percent of Iran’s revenues come from oil exports, and the country has the world’s No. 2 gas reserves.

“The sanctions are going to extract a lot of pressure and cost in Iran, but I’m not sure at this point that they will give up uranium enrichment,” said Mehrzad Bouroujerdi, an Iranian affairs expert at Syracuse University.

The EU has not yet officially announced any new sanctions, but Brown said the EU “will agree.” A senior British official, speaking on condition of anonymity in keeping with government policy, said the sanctions were expected to be formally adopted “in the next few days.”

Cristina Gallach, spokeswoman for EU foreign affairs and security chief Javier Solana, said EU foreign ministers meeting in Luxembourg were prepared to take “a formal decision” on tighter sanctions.

“It is clear they are ready to move further,” she said.

Solana failed last weekend to win Iran’s support for a package of incentives to end uranium enrichment — which Iran’s leaders have declared is a point of national pride and a sign of the country’s technological advances.

Matthew Levitt, a regional affairs expert at the Washington Institute for Near East Policy, said an EU-wide tightening of sanctions would send “a very, very powerful message.”

“It is another brick in the isolation wall around Iran,” said Mustafa el-Labbad, editor-in-chief of Sharqnameh, a Cairo-based magazine that focuses on Turkey and Iran.

But the scope of the expected EU sanctions is still unclear. European diplomats, speaking on condition of anonymity because of the sensitivity of the deliberations, said some divisions remained among the 27-nation bloc about how strong to move against Iran’s energy sectors.

One concern is pushing oil prices even higher.

Crude oil futures hit a record of $139.89 a barrel on the New York Mercantile Exchange before falling back to $134.61. Retail gas prices rose to a record $4.08 a gallon.

Phil Flynn, analyst at Alaron Trading Corp. in Chicago, said sanctions could definitely push prices higher on worries that Iran could retaliate by pulling oil off world markets or attempting to choke off the Strait of Hormuz, the narrow outlet for tankers leaving the Arab Gulf. “The market gets nervous ... they get worried about how Iran’s going to respond,” he said.

The sanctions — the strongest yet against Iran — would follow three sets of U.N. Security Council penalties Iran has shrugged off while continuing to enrich uranium.

But an analyst said targeting Bank Melli may do little to sway Tehran. “The Iranians certainly have been expecting it, and likely have been preparing for ways to work around it. Unless the Europeans (are) willing to sign on to a far more dramatic sanctions package, these measures seem likely to fail,” said Justin Logan, associate director of foreign policy studies at the Cato Institute in Washington.

A news magazine in Iran, Shahrvand Emrouz, reported that $75 billion had been withdrawn from European banks and returned to Iran in the past week. The report could not be independently confirmed.

The United States last year accused Bank Melli of providing services to Iran’s nuclear and ballistic missile programs.

While Europe has moved to reduce its trade ties with Iran, Tehran remains a key trading partner with the Islamic republic.

Germany alone did business worth about $5 billion last year and more than 1,000 firms are selling their products or services to Iran, some through public government subsidies.

Additionally, Europe’s dependence on outside energy makes any attempt to strike hard at Iran’s energy sector problematic. Europe is one of Iran’s main export markets for crude oil, with firms such as TotalFinaElf, ENI and Statoil competing for development rights in Iranian oil fields.

European nations are also trying to build a pipeline from the Caspian region to the EU as a way to reduce European dependence on Russian natural gas.

Dutch Foreign Minister Maxime Verhagen said launching any new package of sanctions hinges on “how positive — or not — Iran’s response will be to the economic incentives package.”

But Iran — which insists its program is exclusively focused on generating electricity — said it would not accept any package demanding the suspension of uranium enrichment, government spokesman Gholam Hossein Elham said in Tehran.

The U.S. and other Western nations accuse Iran of using its nuclear program as cover for potential weapons development and are pushing for tougher measures if Tehran turns down the latest package.

The proposal presented was accompanied by a letter signed by Solana and the foreign ministers of the U.S., Britain, France, Russia, China and Germany that said it is “possible to change the present state of affairs” — if Iran halts sensitive nuclear work.

EU leaders agreed to give Ireland more time to plot a strategy to deal with the bloc's reform treaty, but Czech reserves emerged as a new obstacle to bringing the charter into force.

After late night talks in Brussels, the leaders decided that Ireland should be given until October to devise a plan, leaving other nations to press on with ratifying the treaty, meant to streamline decision-making as the EU expands.

But the Czech Republic posed a new obstacle -- its eurosceptic President Vaclav Klaus having already said that the Lisbon Treaty was dead last week, after more than 53 percent of Irish voters rejected it.

"We won't set any deadlines; not for Ireland, not for anybody else," said Slovenian Prime Minister Janez Jansa, whose country holds the EU's rotating presidency.

"It's very likely that the next European (summit), which will take place in October ... will deal with the question of how to fix the situation," he told reporters after chairing the talks in Brussels.

A Senate panel approved legislation to strengthen U.S. sanctions on Iran in an effort to get that country to drop its nuclear program.

The Senate Finance Committee cleared the bill to expand trade and financial sanctions 19-2, and the House of Representatives passed similar legislation last year.

Washington believes Iran harbors ambitions to build an atomic bomb, while Tehran says its nuclear program is for peaceful energy purposes.

The measure would strengthen existing U.S. sanctions by tightening the trade ban on goods to and from Iran. For example, it would no longer allow the import of Iranian carpets, caviar, and nuts to the United States.

The bill also would expand financial sanctions on some Iranian individuals, and penalize U.S. companies if their foreign subsidiaries do business with Iran.

In provisions likely to displease the White House, both the House and Senate bills also would press Russia to stop helping Iran's nuclear program by barring the United States from entering into a civilian nuclear agreement with Moscow until that country suspends such assistance.

British Prime Minister Gordon Brown announced new troops for Afghanistan and tougher sanctions on Iran, delighting US President George W. Bush who was wrapping up a farewell trip to Europe.

At a joint press conference Brown said the European Union would shortly unveil measures targeting Iran's banking and oil and gas sectors, whilst Bush declared he hoped for a diplomatic solution to the crisis over Tehran's suspect nuclear program.

"That's my first choice. Iranians must understand all options are on the table, however," Bush said on the final day of his six-nation visit after talks with Brown. "Now is the time to work together to get it done."

The prime minister added that Europe was to freeze assets of Iran's largest bank, Melli Bank, and launch "a news phase of sanctions on oil and gas" after weekend talks by EU foreign policy chief Javier Solana in Tehran.

"Today Britain will urge Europe, and Europe will agree to take further sanctions against Iran," Brown said, apparently referring to EU ministerial talks taking place in Luxembourg.

But Solana spokeswoman Cristina Gallach told reporters on the sidelines of the meeting that no decision on the sanctions would be reached, and British officials said that "technical steps" still needed to take place.

On Afghanistan, Brown announced that Britain will send extra troops to the violence-wracked country where US, British and other troops are still battling a fierce Taliban insurgency seven years after the country's invasion.

Speaking later British Defense Secretary Des Browne said an extra 230 troops would be sent, bringing Britain's total force level to 8,030 by next spring -- its highest level since the country's 2001 invasion, Brown said.

The announcement comes as the body of the 100th British soldier to die in Afghanistan - since operations began in 2001 was being repatriated.

Bush also said the United States could help calm inflamed Afghanistan-Pakistan tensions over militants who operate along their shared border but urged talks between Islamabad and Kabul.

"There needs to be better cooperation," Bush said, adding: "There can be more dialogue between the Pak (eds: correct) government and the Afghan government."

On Iran, Brown noted that Solana had presented the latest Europe-crafted package of economic and diplomatic rewards for freezing uranium enrichment and that the ball was now in Tehran's court.

"We await the Iranian response and will do everything possible to maintain the dialogue," he said.

The US president, who arrived in London, also held talks with his old friend Tony Blair -- now international Middle East envoy -- before leaving for Belfast for talks on the future of Northern Ireland.

"We are all thinking about and strategizing about how we can take advantage of the current opportunity to try and advance a settlement between Israelis (and) Palestinians, and not withstanding some of the political turmoil," said US national security adviser Stephen Hadley.

The British prime minister's official spokesman has blamed the Foreign Office for Gordon Brown making a blunder in announcing new EU sanctions against Iran during his press conference with US President George W Bush.

"Today Britain will urge Europe, and Europe will agree, to take sanctions against Iran," Brown announced at his joint press conference.

But after a meeting with EU foreign ministers in Luxembourg, EU High Representative Javier Solana was quoted saying" "No decision has been taken today."

Asked to clear up the confusion at his daily briefing, the prime minister's spokesman said that "the information that he had from the Foreign Office before he left was that there was agreement among EU member states."

The spokesman again replied "the information that he had from the Foreign Office was that it had been discussed," according to extracts of the briefing published on Brown's website.

Given that the Prime Minister was under the understanding that this was going to be discussed and agreed at that meeting, he insisted that "it was discussed and had been agreed."

Put that this was not the case according to the European Union, Brown's spokesman referred again to the information he had was from the Foreign Office, and said that "clearly someone in Brussels need to give journalists further clarity."

When asked why the prime minister thought it was a good idea to impose extra sanctions on Iran in the name of negotiation offering a new deal, he replied "we needed to make clear that in our view so far the cooperation from the Iranians has not been satisfactory." The Guardian's diplomatic editor Julian Borger said that officials were surprised by Brown's announcement that he said wrongfooted the EU.

"It makes it look as if this is all because George Bush came to Europe," Borger quoted an EU official said, referring to the prime minister's claim while standing next to the US president.

Iran said it was ready to negotiate over a new package of economic incentives put forward by major powers seeking to persuade Tehran to curb its nuclear work.

Iranian Foreign Minister Manouchehr Mottaki told a news conference in the Ugandan capital Kampala that the six -- the United States, Russia, China, Britain, France and Germany -- should also take a serious look at Tehran's own proposals.

"We have informed them of our readiness to negotiate. The package given by the P5+1 countries is currently under consideration and at the appropriate time Teheran will give its reactions," said Mottaki, who is in Uganda for a meeting of the Organization of the Islamic Conference.

Iranian President Mahmoud Ahmadinejad accused the six nations of bullying Tehran over its nuclear program and said their efforts would end in disgrace.

After handing over the offers to Iran, EU policy chief Javier Solana reaffirmed the six powers wanted Iran to suspend enrichment during talks on the offer -- a precondition the Islamic Republic has repeatedly rejected.

Solana said he had yet to receive Iran's formal reply. "For the moment there has not been any reply," Solana told reporters in Brussels.

Iran says it is ready to review the proposals, but Tehran seems in no hurry to respond.

Analysts also believe Tehran is using delaying tactics to press ahead with atomic work. An Iranian official said time was on Iran's side.

"We will review the package but not the part about enrichment freeze ... We are moving forward with our work and Iran's nuclear capability is being constantly augmented," said the official, involved in talks with Solana in Tehran.

"Each passing day we are more advanced in nuclear technology, it gives us an upper hand in talks."

A senior Iranian nuclear official, who asked not to be named, told Reuters Iran's answer would not be a straight yes-or-no answer, adding that it would be a "discussable response."

The U.N. Security Council has hit Iran with three rounds of sanctions for refusing to halt its enrichment work, as demanded by the council. Western powers have warned Iran it would face more sanctions if it spurns the offer.

Ahmadinejad said: "The bullying powers have used their capabilities to break the nation's will to obtain nuclear technology ... in our view Iran's nuclear case is closed."

Speaking to clerics in the holy Shiite city of Qom, he said: "Recently, they have started a new game ... the result of this game will be disgrace for them."

Meanwhile, the Iraqi government denied statements made by Iranian President Mahmoud Ahmadinejad on a plot to kill him during his visit to Baghdad last March.

Iranian President Mahmoud Ahmadinejad accused the United States and its allies of plotting to assassinate him during a visit to neighboring Iraq in March, state radio reported.

“Based on reliable intelligence, our enemies had plans to kidnap and kill your servant (Ahmadinejad). But we intentionally made last minute changes in our schedule," the radio quoted Ahmadinejad telling a meeting of clerics in the Shiite holy city of Qom.

Although he did not identify the United States by name, he used the usual term "enemies" to refer to Washington.

A senior U.S. military official in Baghdad said: "The Coalition is unaware of any threats to President Ahmadinejad's life during his visit to Iraq."

During the first visit by an Iranian leader to Iraq since the neighbors fought an eight-year war in the 1980s, Ahmadinejad cancelled his scheduled visit to Shiite holy cities of Karbala and Najaf in southern Iraq.

The presidential office said at the time the trip was cancelled for security reasons.

"The enemies learned about the changes when we already had left Iraq. They were shocked," the radio quoted him as saying.

Ahmadinejad, who often berates Washington in fiery speeches, used his visit to Baghdad to call on the United States to withdraw its troops from Iraq, insisting their presence is to blame for the country's sectarian violence.

Iran and the United States cut diplomatic ties shortly after the revolution when the U.S. embassy was seized by hard-line students and 52 Americans were taken hostages for 444 days.