"An attack, whatever it is, against any site, whether it be nuclear or not, would produce a very rapid response," Defence Minister Ali Shamkhani said on Thursday.
"The Iranian nation would not yet have even been informed of an attack against a site, nuclear or not, before learning of our decisive reaction."
A big explosion near
Earthworks
But a senior security official insisted there was no hostile strike, just major earthworks in a largely uninhabited area in the south of the country.
The blast occurred near Dailam, about 150km from Bushehr, where a controversial nuclear power plant is being built with Russian help.
Al-Alam later dropped any reference to a missile strike from its news bulletins.
"Nothing happened in the region" of Bushehr, said Shamkhani, accusing the media of exaggeration.
Financial market shake
Reports of the blast sent a shock through world financial markets.
The
"This explosion basically sent chills down the spines of futures traders," said Phil Flynn, senior market analyst at Alaron Trading Corp in
Psychological war
Iranian officials have charged that the reports carried by the foreign media were part of a "psychological war being waged by the
The administration of US President George Bush has warned of possible military action over
Israeli action
Earlier on Wednesday,
An Israeli air strike on the Iraqi reactor Osiraq in 1981 dealt a severe blow to Saddam Hussein's nuclear programme.
Nuclear reactor
Russian Atomic Energy Agency chief Alexander Rumyanstev is to travel to
Reacting to the blast report, a US Defence Department spokesman said: "It is
The US State Department said it had no information on the blast report.
PHOTO CAPTION
A handout picture released by Iran's Atomic Energy Organization shows technicians aligning reactor pressure vessel-head nozzles inside the Bushehr nuclear power plant, the Islamic republic's first reactor, some 1,300 kms south of Tehran. (AFP)