1. Tense

    Iran Test-Fires New Missiles

    Iranian navy fires a Mehrab missile during the "Velayat-90" naval wargames in the Strait of Hormuz in southern Iran on January 1, 2012. Iran defiantly announced that it had tested a new missile and made an advance in its nuclear programme after the United States unleashed extra sanctions that sent its currency to a record low. AFP PHOTO/JAMEJAMONLINE/EBRAHIM NOROOZI (Photo credit should read EBRAHIM NOROOZI/AFP/Getty Images)

    EBRAHIM NOROOZI / Getty Images

    Iran isn't backing down. The country announced Monday that it successfully test-fired two long-range missiles in the Gulf that could hit Israel and U.S. bases. Yesterday Iran claimed that its scientists had produced the nation's first nuclear fuel rod, a major step forward in the country's nuclear program, and one that came as a surprise to the West. The military drills and nuclear announcements come shortly after Iran warned it could shut the Strait of Hormuz if sanctions were placed on its oil exports.

    Read it at Reuters