Blast reported in southern Iran

CNN:

A large blast has been reported near the southern Iranian port city of Dailam, in the province where the country has a nuclear power plant, according to Iranian state television. ...

The television report initially quoted witnesses as saying Wednesday's explosion was the result of a missile fired from a plane seen overhead.

However, it later said the blast could have been a falling fuel tank from an Iranian aircraft. Rescue teams have been sent to the area, the television said, without providing details on casualties.

Senior Israeli security sources told Reuters news agency that Israel's military was not involved in any blast in Iran.

"There was no Israeli military involvement in this," one Israeli source was quoted as saying.

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.

Officials at the Russian Embassy in Tehran told CNN in a phone interview there had been no explosion at the nuclear plant.

Reports of a blast come as Iran's intelligence minister was quoted as saying the United States has been flying spy drones over Iran's nuclear sites.

"Most of the shining objects that our people see over Iran's airspace are American spying equipment used to spy on Iran's nuclear and military facilities," AP quoted Intelligence Minister Ali Yunesi as saying Wednesday.

DoctorZin Update: The Command Post has an excellent summary on all the news items regarding this report. I will keep you posted on any further developments.