The US defence department during a classified briefing to the senate armed forces committee said Iran is laying powerful underwater and surface water mines in the Strait of Hormuz but within its own territory.

The Pentagon suspects it is an offensive strategy, and Iran is training its forces to lay mines that could play havoc in a sea war.

To counter this, the US has already urged Russia and China not to sell sea mines to Iran or related advanced technologies which could be used against America and its allies in the region.

The US war drill in the Gulf of Oman could take place around February 2006 and there is a possibility that some Nato members may send their warships and troops to join.

Alongwith the US, Oman, Qatar, Kuwait, Saudi Arabia, Bahrain, UAE and Yemen will participate, while Britain, The Netherlands, Spain and Italy have expressed a desire for such a war drill.

During the drill, the US and its allies will practice their minesweeping skills, and exercise their anti-submarine warfare, long-range maritime reconnaissance, and sea to surface attack capabilities.