Iran tests missile as election race starts

By Zahra Hosseinian and Fredrik Dahl

TEHRAN (Reuters) - President Mahmoud Ahmadinejad said Wednesday Iran had tested a missile that defence analysts say could hit Israel and U.S. bases in the Gulf, a move likely to fuel Western concern about Tehran's nuclear ambitions.

Washington voiced concern after Ahmadinejad announced the test on the same day campaigning for the Iran's June 12 presidential election officially started.

U.S. President Barack Obama "has long been concerned" by any development in Iran's missile program, White House spokesman Robert Gibbs said. A U.S. official said the test was a "step in the wrong direction."

One Western expert saw the missile test as Iran's response to the Israeli prime minister's U.S. visit this week.

Coming a day after Iran's supreme leader accused the United States of promoting terrorism, the test was a further disappointment for the Obama administration, which is seeking rapprochement with Iran after three decades of mutual mistrust.

"Iran just keeps going in the wrong direction. We want them to engage with us, to talk about how we can make the region more stable. This is just a step in the wrong direction," the U.S. official said.

U.S. patience is "not infinite," the official added.

The United States and its allies suspect the Islamic Republic is seeking to build nuclear bombs, a charge Tehran denies, but Obama has offered a new beginning of diplomatic engagement with Iran if it "unclenches its fist."