Mullen said recent events in Basra revealed new shipments of Iranian explosives, including very deadly explosively formed projectiles showing “just how much and just how far Iran is reaching into Iraq to foment instability.”

“The Iranian government pledged to halt such activities some months ago. It's plainly obvious they have not. Indeed, they seem to have gone the other way,” Mullen said.

Mullen said the focus of military operations remains on the threat posed by the arms influx in Iraq. However, Mullen warned: “while all options certainly remain open, I'm convinced the solution right now still lies in using other levers of national power, including diplomatic, financial and international pressure.”

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