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TEHRAN-Iran said on Tuesday new sanctions imposed on it by the European Union over its nuclear plans could hurt diplomatic efforts to resolve the row.The standoff between the West and the Islamic state has sparked fears of a military confrontation that would disrupt oil supplies. Last week a U.S. newspaper report said Israel had practiced for a possible strike against Iran's nuclear sites.But a senior Iranian official denied rumors on Tuesday of an Israeli attack on his country, which sent stocks lower and oil prices higher."No attack against Iran's nuclear facilities has taken place," the official said. In Jerusalem, an Israeli army spokesman said: "We are not aware of any such incident in Iran."Israel, widely believed to have the Middle East's only atomic arsenal, has described Iran's nuclear program as a threat to its existence.Following the market rumor, commander-in-chief of Iran's elite Revolutionary Guards Corps Mohammad Ali Jafari warned the "enemy" over the consequences of any attack on Iran."If the enemy makes a strategic mistake (by attacking), the Revolutionary Guards are fully prepared to give a severe answer to the enemy," the official IRNA news agency quoted him as saying.The Corps is in charge of Iran's most advanced missile systems like the Shahab-3 with a range of 2,000 km (1,250 miles), which analysts say can reach Israel.
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