Iran military exercises to protect nuclear sites

Iran has revealed it is holding new military exercises to boost protection of its nuclear sites from possible attack.

The country says it has deployed warplanes, missiles and anti-aircraft artillery as part of a new plan to protect sites that have been threatened by a possible Israeli airstrike.

The exercise has been dubbed 'Sarollah' - a word borrowed from the Arabic meaning 'God's vengeance'.

"These manoeuvres aim to reinforce the coordination between the military and the Revolutionary Guards for a total coverage of the country's sensitive facilities, especially nuclear sites," the military said in a statement.

The manoeuvres show Iran is taking the threat seriously and is preparing for any military confrontation.

On the same day, inspectors from the UN nuclear watchdog arrived in Tehran for a second round of talks on Iran's nuclear program.

Iran has said its nuclear program is entirely peaceful, and that it will not abandon its nuclear ambitions.

The country recently announced "major" nuclear progress, declaring it was adding thousands more centrifuges to its uranium enrichment activities and producing what it said was 20 per cent enriched nuclear fuel.

But the United States said the achievement was overblown.

Nevertheless, much of the West and Israel fear Iran's activities include research for atomic weapons.

Iran has warned it could cut oil exports to more European nations if Western economic sanctions are not lifted.

The country stopped Iranian oil exports to France and Britain on Sunday.

The European Union has shrugged off the threat of further sanctions, saying it can cope with any halt in Iranian supplies.

Iran exports about 20 per cent of its crude - some 600,000 barrels per day (bpd) - to the EU, most of which goes to Italy, Spain and Greece.

"In terms of immediate security of stocks, the EU is well stocked with oil and petroleum products to face a potential disruption of supplies," said Sebastien Brabant, a spokesman for EU policy chief Catherine Ashton.

Although the export halt for France and Britain was largely symbolic - neither country imports much Iranian oil - prices on world markets hit nine-month highs on Monday.

The Brent and New York contracts reached $US121.15 and $US105.44 a barrel in early trading - the highest levels since May 5, 2011.

In late London deals, Brent North Sea crude for delivery in April stood at $US120.14 a barrel, up 56 cents compared with Friday's close.

ABC/AFP