IRAN HOLDS HUGE MILITARY EXERCISE

LONDON [MENL] -- Iran has completed a huge military exercise that tested
Teheran's ability to attack Western shipping and Arab oil facilities in the
Gulf.

Western diplomatic sources said that in December 2005 Iran completed its
largest military exercise in years. The sources said the military conducted
an air and sea exercise designed to test capabilities to strike U.S. and
Arab targets throughout the Persian Gulf.

"The exercise was meant to show the West that Iran could stop all oil
shipments in the Gulf and destroy numerous oil facilities in Gulf Arab
countries," a diplomatic source said.

The exercise included a range of fighter-jets and helicopters from the
Iranian Air Force. The navy contributed surface vessels and submarines.
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