By Edmund Blair
TEHRAN (Reuters) - Iran tested more missiles in the Gulf onThursday, state media said, and the United States pledged todefend its allies against any Iranian aggression.
Washington, which fears Tehran wants to master technologyto build nuclear weapons, said after Iran test-fired ninemissiles on Wednesday that Tehran should halt further tests ifit wanted to gain the world's trust.
Speculation that Israel could bomb Iran has mounted since abig Israeli air drill last month. U.S. leaders have not ruledout military options if diplomacy fails to end the nuclear row.
Iran has responded by saying it will strike back at TelAviv, as well as U.S. interests and shipping, if it is hit.Tehran insists its nuclear programme has only civilian goals.
Iran has said missiles fired during wargames under way inthe Gulf included ones that could hit Israel and U.S. bases.
U.S. Secretary of State Condoleezza Rice said on a visit tothe former Soviet republic of Georgia that Washington woulddefend American interests and those of its allies.
"We take very, very strongly our obligation to help ourallies defend themselves and no one should be confused aboutthat," Rice said after meeting Georgian President MikheilSaakashvili.
After Iran's missile tests on Wednesday, Rice suggested itsactions justified U.S. plans for an anti-missile shield withbases in eastern Europe, a project Russia strongly opposes.
Iranian state TV and radio said the Revolutionary Guards --the ideologically driven wing of Iran's armed forces -- firedground-to-sea, surface-to-surface and sea-to-air missilesovernight. Long-range missiles were also launched.
CHINA URGES RESTRAINT
"The ... manoeuvre brings power to the Islamic Republic ofIran and is a lesson for enemies," Guards Commander-in-ChiefMohammad Ali Jafari was quoted as saying.
Iran has threatened to shut the Strait of Hormuz, a vitalroute for Gulf oil exports, if it is attacked. Thursday'sexercises involved divers and speedboats, as well as the launchof a high-speed torpedo called Hout, state media said.
Wednesday's tests rattled global oil markets, pushing upthe price of oil. Crude prices have dipped in recent days buthave hit a series of record highs this year partly on Irantensions.
China urged restraint in the row over Iran's nuclearprogramme but avoided direct condemnation of Tehran for test-firing the missiles. Wednesday's missile manoeuvres had drawncriticism from the United States and European countries.
"We express our concern about these developments," ChineseForeign Ministry spokesman Liu Jianchao told a news conferencewhen asked about Iran's missile tests.
Liu welcomed the prospect of fresh talks on the nuclearprogramme being pursued by Iran, the world's fourth largest oilproducer and China's third biggest crude supplier.
The United States, Britain, France, Germany, Russia andChina have offered Iran incentives to curb its nuclear work.Tehran rejects their demand that it suspend uranium enrichment.
The European Union's foreign policy chief, Javier Solana,representing the six powers, is expected to meet Iranianofficials to discuss Iran's response to the package. Solana'sspokeswoman said on Wednesday no place or date had been set.
Russia, which is building Iran's first and so far onlynuclear power plant, and China have been resisting U.S.-ledcalls for expanding U.N. sanctions on the Islamic Republic.
Sanctions have made Western firms increasingly wary aboutinvesting. France's Total said on Thursday it would not investfor now in a big gas deal due to political tensions.
Iran has brushed off the impact of Western caution sayingit has a big enough cash pile from windfall oil earnings tocarry out the project itself or find other interested parties.
"This is our message. We will proceed with development withor without them," Iranian Oil Minister Gholamhossein Nozaritold journalists when asked about the latest comments fromTotal.
(Additional reporting by Arshad Mohammed in Tbilisi;editing by Philippa Fletcher)
