The United States says it wants Iran's nuclear standoff with the West solved diplomatically but has refused to rule out military action.

"We have announced that wherever America does something evil, the first place that we target will be Israel," Revolutionary Guards Rear Admiral Mohammad-Ebrahim Dehqani was quoted as saying by Iran's student news agency ISNA.

The Islamic Republic has never recognized Israel and Iranian President Mahmoud Ahmadinejad has called for the Jewish state to be "wiped off the map."

Dehqani said naval wargames held in the Gulf last month "carried the warning to those countries that threaten Iran, including America and the Zionist regime".

Experts said the wargames, in which Iran said it had tested new missiles and torpedoes, were a thinly veiled threat that it could disrupt vital Gulf oil shipping lanes if it was attacked.