“The footage released by the US Navy was compiled using file pictures and the audio has been fabricated,” the state-run English-language channel Press TV quoted an official in the Revolutionary Guards as saying.

Iran’s Parliament Speaker, commenting on Tuesday, described the US account of the incident as “propaganda”. The Iranian Foreign Ministry has also dismissed the US report, saying it was a routine contact in the vital oil shipping route.

Bush called the incident “provocative” before leaving Washington on a West Asia trip aimed at nurturing Israeli-Palestinian peace efforts and rallying Arab opposition to Iran and its growing regional influence.

The encounter was the latest sign of tension between Washington and Tehran, at odds over Iran’s nuclear programme and who is to blame for the violence in Iraq.