Don’t Bomb Iran

Jan 18: Wall Street wobbled on reports of an Iranian missile attack on a US warship in the Gulf.  The US navy denied the rumours, but it is unclear who started them.
U.S. officials say rumor of Iran strike not true
Source: Reuters 18 Jan 2007 15:05:10 GMT

WASHINGTON, Jan 18 (Reuters) - U.S. defense officials on Thursday said a rumored Iranian missile strike on a U.S. naval vessel in the Gulf was not true.

“No such event took place,” said one of the officials on condition of anonymity.

The bond market briefly pared losses on talk of possible military engagement between the United States and Iran, but turned back down after the Defense Department said the incident did not occur.

Tensions are high between Washington and Tehran. The United States accuses Iran of supporting insurgents in Iraq and charges that Iran is seeking nuclear weapons under the cover of a civilian energy program.

The Pentagon has increased the U.S. military presence in the Gulf in recent weeks, a move widely seen as a warning against provocative actions by Iran.