Iran announces war games in Gulf to 'confront possible threats'

More than 100 vessels potentially involved in the drills, according to US official

Goldman Sachs says geopolitical tensions could oil push oil prices higher by $2.50 per barrel (REUTERS)

Iran's Revolutionary Guard has announced it held war games in the Gulf this week as it increases its preparedness for "confronting possible threats" from enemies, according to state news state news agency IRNA, as US sanctions against the state resume.

Guards spokesman Ramezan Sharif "expressed satisfaction over the successful conduct of the Guards naval exercise, emphasising the need to maintain and enhance defence readiness and the security of the Gulf and the Strait of Hormuz and to confront threats and potential adventurous acts of enemies," IRNA said.

"This exercise was conducted with the aim of controlling and safeguarding the safety of the international waterway and within the framework of the programme of the Guards' annual military exercises.”

US officials believe Iran began carrying out naval exercises in the Gulf, ahead of the scheduled annual drills amid heightened tensions with Washington as sanctions were re-imposed on Sunday.

The increased Iranian naval activity, which was confirmed by the US military’s central command, extended to the Strait of Hormuz - a strategic waterway for shipments that the Revolutionary Guards have threatened to block to oil traders

One US official, speaking to Reuters on condition of anonymity, said more than 100 vessels were potentially involved in the drills, including small boats.

They said the drills appeared designed to send a message to Washington, which is intensifying its economic and diplomatic pressure on Tehran but has so far stopped short of using the its military to more aggressively counter Iran and its proxies.

The rhetoric between the US and Iran remains heated, despite Donald Trump tweeting last week that he would be willing to meet with Iranian President Hassan Rouhani.

Iran has been furious over Mr Trump’s decision to pull out of an international agreement on Iran's nuclear programme and re-impose sanctions on Tehran.

The nuclear deal lifted international sanctions in return for Iran limiting its nuclear program and allowing regular inspections.

UN inspectors said Iran was complying with the deal, but Mr Trump felt the agreement did not go far enough and he called for a new accord that would force Iran to radically decrease its military support for the Syrian government and regional militant groups.

The US has been pushing its allies to stop importing Iranian oil ahead of the November deadline. China, India, Turkey and South Korea are among the top importers of Iranian oil.

Senior Iranian officials, however, have warned the country would not easily yield to a renewed US campaign to strangle Iran’s vital oil exports.

But Iran did not appear interested in drawing attention to the drills. Iranian authorities had not commented on them earlier and several officials contacted by Reuters this week had declined to comment.

Associated Press and Reuters contributed to this report