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Whether or not Tehran is bluffing, its threat to close the Strait of Hormuz has gained enough amplitude for western powers to prepare contingency plans, according to industry sources

Saudi Arabia frequently blames Iran for unrest in Shia populations in the region.

Confronted with another ratcheting up of international and regional pressure, Tehran has a number of proxy conflicts in which it can make life uncomfortable for its enemies – and President Ahmadinejad and his allies seem determined to flex their muscles over neighbouring Iraq as the US prepares for its end-year military withdrawal

Western powers have added more sanctions to a raft of measures intended to pressure Iran into modifying its nuclear ambitions, but a pocket of finance is still available for businesses seeking to trade with the Islamic Republic.

In the wake of the revelation of a plot to kill Saudi ambassador to Washington Adel Al-Jubeir, blamed on the Iranian Quds Force, there has been a marked escalation of rhetoric against Tehran, which reached fever-pitch ahead of the release of the International Atomic Energy Agency (IAEA)’s report on 8 November.

UN watchdog the International Atomic Energy Agency (IAEA) has provided evidence of Iran’s secret building of nuclear weapons technology. Its report, published on 8 November, suggests Iran is seeking to develop atomic weapons, defying Tehran’s claims that the country is using its nuclear programme for civilian purposes.

The last few weeks has seen a marked escalation in Saudi-Iranian tension. Regionally the two powers are facing off in Syria, while Riyadh has accused Iran of meddling in its eastern region. The US has revealed dramatic details of a plot to kill the Saudi ambassador in Washington Adel Al Jubair, once again pointing the finger at Iran. But is it just a war of words and accusations, or is there more at play?

The activation of Iran’s Bushehr nuclear power plant in September, followed by the publication of excerpts from an allegedly leaked document questioning its safety, have increased fears of a large scale calamity in the Gulf.

Over the past year Swiss foreign policy towards the Middle East has shifted away from the country’s long-held adherence to neutrality towards positions that fall more into line with the wider Western camp

The astonishing allegation that the Islamic Revolutionary Guard Corps (IRGC) was behind a plot to kill Saudi ambassador to Washington Adel Al Jubeir has left many analysts baffled and the Western media scrambling for an explanation. One US-based analyst called it “just bonkers”.

The missile threat posed to the Gulf region from Iran is “overstated”, according to a paper entitled A Crude Threat: The Limits of an Iranian Missile Campaign against Saudi Arabian Oil, published in the Harvard University-based International Security journal.

The last few weeks has seen a marked escalation in Saudi-Iranian tension. Regionally the two powers are facing off in Syria, while Riyadh has accused Iran of meddling in its eastern region. The US has revealed dramatic details of a plot to kill the Saudi ambassador in Washington Adel Al-Jubair (see box, below), once again pointing the finger at Iran. But is it just a war of words and accusations, or is there more at play?

Switzerland, Iraq and, bizarrely, Venezuelan President Hugo Chávez and Hollywood actor Sean Penn were among those credited with helping to secure the release of the US citizens who spent two years behind bars in Tehran on spying charges. But when Josh Fattal and Shane Bauer touched down in Muscat, Fattal said: “Our deepest gratitude goes toward his majesty Sultan Qaboos [Bin Said Al-Said] of Oman for obtaining our release.”

There are a number of difficulties still to overcome, but the neighbours finally appear to have made progress in efforts to settle long-running border disputes and assign landmarks.

The Islamic Republic of Iran Navy (Irin) and the more recently created Islamic Revolutionary Guard Corps Navy (IRGCN) are developing capabilities that increase their threat to shipping and other targets in the Gulf, Caspian Sea and Gulf of Oman, according to research presented by the Washington-based Centre for Strategic and International Studies (CSIS).