Iran naval drills underway amid tensions with U.S.

A staff member removes the Iranian flag from the stage after a group picture with foreign ministers and representatives of the U.S., Iran, China, Russia, Britain, Germany, France and the European Union during the Iran nuclear talks at the Vienna International Center in Vienna, Austria July 14, 2015. To match Analysis USA-ELECTION/IRAN

By Phil Stewart

WASHINGTON (Reuters) – The United States believes Iran has started carrying out naval exercises in the Gulf, apparently moving up the timing of annual drills amid heightened tensions with Washington, U.S. officials told Reuters on Thursday.

One U.S. official, speaking on condition of anonymity, said possibly more than 100 vessels were involved in the drills, including small boats. A second official expected the drill could be wrapped up this week.

Iran has been furious over U.S. President Donald Trump’s decision to pull out of an international nuclear deal and reimpose sanctions on Tehran. Senior Iranian officials have warned the country would not easily yield to a renewed U.S. campaign to strangle Iran’s vital oil exports.

The U.S. military’s Central Command on Wednesday confirmed it has seen an increase in Iranian naval activity, including in the Strait of Hormuz, a strategic waterway for oil shipments that Iran’s Revolutionary Guards have threatened to block.

“We are monitoring it closely, and will continue to work with our partners to ensure freedom of navigation and free flow of commerce in international waterways,” said Navy Captain Bill Urban, the chief spokesman at Central Command, which oversees U.S. forces in the Middle East.

Central Command did not update its guidance on Thursday.

A third official said the Iranian naval operations did not appear to be affecting commercial maritime activity.

U.S. officials, speaking to Reuters on condition of anonymity, said the drills appeared designed to send a message to Washington, which is intensifying its economic and diplomatic pressure on Tehran but so far stopping short of using the U.S. military to more aggressively counter Iran and its proxies.

But Iran did not appear interested in drawing attention to them. Iranian authorities have yet to comment on them and several officials contacted by Reuters declined to comment.

Trump’s policies are already putting significant pressure on the Iranian economy, although U.S. intelligence suggests they may ultimately rally Iranians against the United States and strengthen Iran’s hardline rulers, officials say.

Iran’s currency plumbed new depths this week ahead of Aug. 7, when Washington is due to reimpose a first lot of sanctions following Trump’s withdrawal from the 2015 nuclear deal.

Protests have broken out in Iran since the beginning of the year over high prices, water shortage, power cuts and alleged corruption.

On Tuesday, hundreds of people rallied in cities including Isfahan, Karaj, Shiraz and Ahvaz to protest high inflation caused in part by the weak rial.

(Reporting by Phil Stewart in Washington; additional reporting by Parisa Hafezi in Ankara; Editing by James Dalgleish)

U.S. Navy says will protect commerce in face of Iran oil threat

FILE PHOTO: The Sterett Destroyer escorts the Nimitz-class aircraft carrier USS Abraham Lincoln (CVN 72) during a transit through the Strait of Hormuz, February 14, 2012. REUTERS/Jumana El Heloueh/File Photo

By Bozorgmehr Sharafedin

LONDON (Reuters) – The U.S. Navy stands ready to ensure freedom of navigation and free flow of commerce, a spokesman for the U.S. military’s Central Command said on Thursday, after Iran warned it will block oil shipments through the Strait of Hormuz.

Iran has threatened in recent days to close the strait, a vital route for world oil supplies, if Washington tries to cut Tehran’s exports.

An Iranian Revolutionary Guards commander said on Wednesday Iran would block any exports of crude for the Gulf in retaliation for hostile U.S. action.

“The U.S. and its partners provide, and promote security and stability in the region,” Central Command spokesman Navy Captain Bill Urban said in an email to Reuters.

Asked what would be the U.S. Naval Forces reaction if Iran blocks the Strait of Hormuz, he said: “Together, we stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows.”

The Islamic Revolutionary Guards Navy (IRGCN) lacks a strong navy and instead focuses on an asymmetric warfare capability in the Gulf. It possesses many speed boats and portable anti-ship missile launchers and can lay naval mines.

A senior U.S. military leader said in 2012 the Guards have the ability to block the Strait of Hormuz “for a period of time” but the United States would take action to reopen it in such an event.

In May, U.S. President Donald Trump pulled out of a multinational deal under which sanctions on Iran were lifted in return for curbs to its nuclear program. Washington has since told countries they must stop buying Iranian oil from Nov. 4 or face financial measures.

(Reporting by Bozorgmehr Sharafedin; Editing by Matthew Mpoke Bigg)