Dubai: As Iran tested a cruise missile on Monday during ongoing military drills, political experts say the country is testing the seriousness of the West amid escalated political and economic isolation.

"Iran seeks to test western resolve over the tightening of economic sanctions as part of ongoing efforts to force Iran to stop its nuclear programme," Anoush Ehsteshami, a political science professor at Durham University told Gulf News.

The European Union is weighing an embargo on importing Iranian oil, a move that Iranian officials warn could push them to close the strategic Strait of Hormuz.

Nearly 40 per cent of Iran's oil exports go to European markets, experts say. With such a high percentage, it would "not be easy to find alternative markets for producers and exporters," Ehsteshami said, adding that Iran is trying to show that escalation will cost them.

Iran is also trying to prove that an attack against it would not affect the country unilaterally, it would also have regional implications, he added, in reference to its Arab neighbours.

However, others disagree that Iran will escalate the situation further. "Iran will not make the first move, but it is showing that if Iran is attacked it has the right to defend itself," Musaib Al Nuami, Editor-in-chief of Iranian newspaper Al Wefaq, told Gulf News. Imposing an embargo on Iran's oil exports is interpreted by the government as a hostile act, he said.

On Saturday, US President Barack Obama signed a new batch of sanctions into law, which forces foreign firms to choose between doing business with either Iran or the US.

Iran yesterday tested missiles near the Strait of Hormuz. The launch of two missiles took place on the final day of war games in waters east of the strait at the entrance to the Gulf, a navy spokesman, Commodore Mahmoud Mousavi, was quoted as saying by official media. Another missile was also to be tested yesterday, he said.

France said the tests were regrettable and told Tehran that the Strait of Hormuz must remain open. "We regret the very bad signal sent to the international community by the latest missile tests announced by Iran," foreign ministry spokesman Bernard Valero said.