Blast near Iran N-site

A large blast has been reported near the southern port city of Dailam in Iran, where the country has a nuclear power plant, reports CNN quoting Iranian state television.

The television report said witnesses claim Wednesday's blast was the result of a missile fired from a plane seen overhead, CNN said.

"A powerful explosion was heard this morning on the outskirts of Dailam in the Bushehr province. Witnesses said that the missile was fired from an unknown plane 20 kilometers (12 miles) from the city," CNN quoted Iran's Arabic language Al-Alam as saying. 

There was no immediate reaction from Iranian officials, said Al-Alam.

'Iran's Russian-built 1,000-megawatt nuclear reactor, its only nuclear power plant, is due to start operating in Bushehr province in late 2005,' said CNN.  

According to an Israeli website, 'Israeli sources deny involvement in purported missile attack by unidentified aircraft over S. Iran town of Deylam on Persian Gulf where nuclear installation due to begin operating later this year. Oil prices jumped by $1 to past $48 pbd after first news.'

'Iranian TV which interrupted broadcast to break news of explosion is now suggesting it was caused by falling fuel tank detached from plane,' said Debka.com.