DUBAI, May 11: The United States has warned Iran of instant retaliation if it ever dared to close the Straits of Hormuz, conduit for half of world's oil exports.

General H J Binford Peay, commander-in-chief, US central command told reporters in Manama at the end of a two-day visit reminded Teheran that Washington had ``sizeable naval capability in the region'' to enforce the warning.

He said that the United States still considered Iran as a middle-and-long term threat to the region as it maintained the largest regional navy, amassed a large number of ballistic missiles and had an ongoing defence research programme.

Gen Peay pooh poohed the Iranian threat to close the Hormuz when it chose to do so saying tehran was not likely to carry out the threat despite its capabilities backed by navy, ballistic missiles and mines. ``I do not believe it can do that. We will take immediate action in terms of the defence of the Strait'' Peay was quoted by The Khaleej Times, English daily from Dubai as saying.

He asserted that the United States will ensure that the Straits remained open all the time and pointed out that America had a significant naval capability in the Gulf at all times.

``Access to the Strait is very important not just to the United States, but it is important to the entire world'' he said adding that the US navy was one of the very best in the world. ``I can assure you that we are going to keep the Straits open.'' But he said he did not want to go into the details of tactical operations they would take.

Gen Peay repeated the US allegation that Iran continued to foster regional terrorism, a charge which made President Clinton impose unilateral sanctions on tehran. Iran has denied it helped terrorists anywhere.

Turning the turrets on President Saddam Hussein, Gen Peay said Iraq was a near term threat with its largest regional army and the US will continue to rein Baghdad as long as Saddam made threats against Kuwait.

He accused Iraq of not complying with the post-war requirements of returning Kuwait prisoners of war and dismantling its ballistic missiles and arsenals. Saddam also continued to threaten Kuwaiti people, he alleged.

He said the us watching closely the movements and deployment of the elite Republican guards and army or Iraq which were in ``relative medium state of readiness.''

He said the restrictions imposed on movements of US military personnel outside their bases in the region were being relaxed. The restrictions were introduced in the wake of security threats after the bombing of a US base in Saudi Arabia.

General Peay who paid a brief visit to Saudi Arabia held talks with top Saudi and Bahraini officials on defence cooperation and later left for Kuwait on his way back to the United States via Jordan.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.