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Iran Warns US It Will Retaliate If Attacked

TEHRAN - Iran test-fired nine missiles today and warned the United States and Israel it was ready to retaliate if they attacked the Islamic Republic over its disputed nuclear projects.

Washington, which says Iran seeks atomic bombs, told Tehran to halt further tests if it wanted the world to trust it. Iran, the world's fourth largest oil producer, insists its nuclear programme aims only at generating electricity.

Rising tensions have rattled financial markets. Oil prices, which had slipped from record highs, rebounded about $2 a barrel after today's tests.