U.S. CONCERNED OVER IRANIAN NAVAL BUILDUP

WASHINGTON [MENL] -- The United States, concerned over the Iranian naval
buildup, has determined that the Islamic republic can halt oil shipments to
and from the Persian Gulf.

The determination by the Defense Department and the U.S. intelligence
community comes amid Iran's naval buildup and the production and procurement
of indigenous platforms and systems.

Officials said the Pentagaon has concluded that Iran has the most powerful
navy in the Persian Gulf. They cited Iran's force of Kilo-class submarines,
missile patrol boats and cruise missiles.

"Iran's navy is the most capable in the region and could stem the flow of
oil from the Gulf for brief periods by employing a layered force of
diesel-powered Kilo submarines, missile patrol boats, naval mines and sea
and shore-based anti-ship cruise missiles," Defense Intelligence Agency
director Lowell Jacoby told the Senate Select Intelligence Committee on Feb.
11. "Aided by China, Iran is developing potent anti-ship cruise missile
capabilities and is working to acquire most sophisticated naval
capabilities."
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