By Zahra Hosseinian
TEHRAN (Reuters) - The Revolutionary Guards said Iran wouldimpose controls on shipping in the vital Gulf oil route if Iranwas attacked and warned regional states of reprisals if theytook part, a newspaper reported on Saturday.
Fear of an escalation in the standoff between the West andIran, the world's fourth largest oil producer, have been onefactor propping up sky-high oil prices. Crude hit a recordlevel on international markets near $143 a barrel on Friday.
Speculation about a possible attack on Iran because of itsdisputed nuclear ambitions has risen since a report this monthsaid Israel had practised such a strike, prompting increasinglytough talk of retaliation, if pushed, from Tehran.
"Naturally every country under attack by an enemy uses allits capacity and opportunities to confront the enemy," Guardscommander-in-chief Mohammad Ali Jafari told Jam-e Jam newspaperin some of the toughest language Iran has used so far.
Analysts say Iran may not match the firepower of U.S.forces but could still cause havoc in the region usingunconventional tactics, such as deploying small craft to attackships, or using allies in the area to strike at U.S. or Israeliinterests.
"Regarding the main route for exiting energy, Iran willdefinitely act to impose control on the Persian Gulf and Straitof Hormuz," Jafari said of the Gulf waterway through whichabout two-fifths of all globally traded oil passes.
Iranian officials have in the past sent mixed signals aboutwhether Iran would use oil as a weapon. But such threats, whenmade, have sent jitters through the crude market for fear ofdisrupting supplies from big OPEC producers in the Gulf.
The Islamic Republic insists its nuclear programme ispeaceful and aimed at generating electricity. But the West andIsrael fear Iran is seeking to build atomic bombs. Israel isbelieved to be the only Middle East state with nuclear arms.
Washington has said it wants diplomacy to end the nuclearrow but has not ruled out military action should that fail.
'RIGHT TO RESPOND'
"If there is a confrontation between us and the enemy fromoutside the region, definitely the scope (of the confrontation)will reach the oil issue," Jafari said.
The Revolutionary Guards are the ideologically driven wingof Iran's military with air, sea and land capabilities, and aseparate command structure to regular units.
"After this action (of Iran imposing controls on the Gulfwaterway), the oil price will rise very considerably and thisis among the factors deterring the enemies," Jafari said.
He said any military action might "be able to delay Iran'snuclear activities but this delay will certainly be veryshort".
Jafari warned neighbours not to let their territory beused.
"If the attack takes place from the soil of another country... the country attacked has the right to respond to theenemy's military action from where the operation started," hesaid.
Kuwait, the launchpad for the U.S.-led invasion of Iraq,and Iraq itself, where U.S. troops are now stationed, have bothsaid they would not let their land be used for a strike onIran. The U.S. military has bases in other Gulf states andAfghanistan.
Jafari said U.S. forces were "more vulnerable thanIsraelis" because of their troops in the area. Iran's topauthority, Supreme Leader Ayatollah Ali Khamenei, has in thepast said Iran would target U.S. interests if attacked.
"Iran can in different ways harm American interests evenfar away," the Guards commander said.
Jafari suggested Iran's allies in the region, who includeLebanon's Shi'ite militia Hezbollah, could also retaliate. Hereferred to Iran's ties with those living in Lebanon's Shi'iteheartland of south Lebanon but did not refer to any group.
"Israelis know if they take military action against Iran... the abilities of the Islamic and Shi'ite world, especiallyin the region, will deliver fatal blows," Jafari said, addingthat Israel was in range of Iranian missiles.
He also hinted that Hamas, the Palestinian Islamist groupthat receives Iranian funding and which has sent suicidebombers into Israel, might act. But, again, he did not name thegroup.
(Additional reporting by Hashem Kalantari, Writing byEdmund Blair; Editing by Charles Dick)