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Iran has begun uranium enrichment at a new underground site well protected from possible airstrikes, a leading hardline newspaper reported Sunday in another show of defiance against Western pressure to rein in Tehran’s nuclear program.

Another newspaper quoted a senior commander of the powerful Revolutionary Guard force as saying Tehran’s leadership has decided to order the closure of the Strait of Hormuz, a strategic oil route, if the country’s petroleum exports are blocked. Revolutionary Guard ground forces also staged war games in eastern Iran in an apparent display of resolve against U.S. forces just over the border in Afghanistan.

“The supreme authorities … have insisted that if enemies block the export of our oil, we won’t allow a drop of oil to pass through the Strait of Hormuz. This is the strategy of the Islamic Republic in countering such threats,” Revolutionary Guard deputy commander Ali Ashraf Nouri was quoted as saying by the Khorasan daily.

Iranian politicians have issued similar threats in the past, but this is the strongest statement yet by a top commander in the security establishment.

The latest statements are certain to fuel tensions with the U.S. and its allies, which are trying to turn up pressure on Iran with new sanctions to punish it over its disputed nuclear program. The West suspects Iran is trying to make nuclear weapons, but Iran denies this.

The United Nations has already sanctioned Iran for refusing to stop uranium enrichment _ which can produce both nuclear fuel and fissile warhead material. Tehran says its nuclear program is only for energy and medical research, and refuses to halt uranium enrichment.

Kayhan daily, which is close to Iran’s ruling clerics, said Tehran has begun injecting uranium gas into sophisticated centrifuges at the Fordo facility near the holy city of Qom.

“Kayhan received reports yesterday that show Iran has begun uranium enrichment at the Fordo facility amid heightened foreign enemy threats,” the paper said in a front-page report. Kayhan’s manager is a representative of Iran’s Supreme Leader Ayatollah Ali Khamenei, who has the final word on all important matters of state.

Iran’s nuclear chief, Fereidoun Abbasi, said late Saturday that his country will “soon” begin enrichment at Fordo. It was impossible to immediately reconcile the two reports.

Iran has a major uranium enrichment facility in Natanz in central Iran, where nearly 8,000 centrifuges are operating. Tehran began enrichment at Natanz in April 2006.

The Fordo centrifuges, however, are reportedly more efficient. And the site better shielded from aerial attack.

Nouri said Iran’s leadership has made a strategic decision to close the Strait of Hormuz, should the country’s exports be blocked. One-sixth of the world’s oil flows to market through the Strait of Hormuz, at the mouth of the Persian Gulf unsecured personal loans.

President Barack Obama approved new sanctions against Iran a week ago, targeting the central bank and its ability to sell petroleum abroad. The U.S. has delayed implementing the sanctions for at least six months, worried about sending the price of oil higher at a time when the global economy is already struggling. But the new sanctions nevertheless prompted a series of threats from Iranian officials about closing the Strait of Hormuz.

The newspaper paraphrased Nouri as saying that a 10-day naval war game which ended Tuesday was preparation for such a closure. The Guard, which is Iran’s most powerful military force and which has its own naval arm, has planned more sea maneuvers for February.

“The exalted leader (Khamenei) determined a new strategy for the armed forces, by which any threat from enemies will be responded to with threats,” Nouri said.

The U.S. and Israel have said that all options remain open, including military action, should Iran continue with its enrichment program.

Tehran says it needs the program to produce fuel for future nuclear reactors and medical radioisotopes needed for cancer patients.

The country has been enriching uranium to less than 5 percent for years, but it began to further enrich part of its uranium stockpile to nearly 20 percent as of February 2010, saying it needs the higher grade material to produce fuel for a Tehran reactor that makes medical radioisotopes needed for cancer patients. Weapons-grade uranium is usually about 90 percent enriched.

Iran says the higher enrichment activities _ to nearly 20 percent _ will be carried out at Fordo. These operations are of particular concern to the West because uranium at 20 percent enrichment can be converted into fissile material for a nuclear warhead much more quickly than that at 3.5 percent.

Built next to a military complex, Fordo was long kept secret and was only acknowledged by Iran after it was identified by Western intelligence agencies in September 2009.

Buried under 300 feet (90 meters) of rock, the facility is a hardened tunnel and is protected by air defense missile batteries and the Revolutionary Guard, Iran’s most powerful military force. The site is located about 20 miles (32 kilometers) north of Qom, the religious nerve center of Iran’s ruling system.

“The Fordo facility, like Natanz, has been designed and built underground. The enemy doesn’t have the ability to damage it,” the semiofficial Mehr news agency quoted nuclear chief Abbasi as saying Sunday.

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Nigeria, Africa

Gas prices unexpectedly rose more than 30 percent for the new year in Myanmar and sparked fears of other goods costing more as well.

Motorists learned of the increase at the pump Sunday when prices increased from 2,500 kyat (3.15 dollars) to 3,350 kyat (4.2 dollars) per Imperial gallon (4.5 liters).

The government made no announcement. But with the fuel price hike, and a new 40 percent electricity cost increase announced late last year, people are concerned about inflation of consumer goods, too.

Myanmar’s energy production is not enough to meet domestic demand, and it imports petrol and other fuels. The government subsidizes gas prices and rations it to two Imperial gallons (9 liters) a day.

An unannounced price hike in 2007 sparked anti-government protests that led to the “saffron rebellion.” The military government then in power crushed it, leaving at least 15 dead and thousands arrested.

The nominally civilian government that took power early last year has made political changes that have improved its relationship with citizens.

(This version CORRECTS Corrects conversion of Imperial gallon to liter, from 4.2 to 4.5. This story is part of AP’s general news and financial services.)

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Asian policy makers eager to sustain growth in 2012 may put their economies at risk with interest- rate cuts or fiscal stimulus that some can ill-afford.

The likelihood of

+%3Cp%3E+Consumer+prices+were+flat+in+November+as+Americans+paid+less+for+cars+and+gasoline%2C+a+further+sign+of+a+cooldown+in+inflation+that+could+give+the+Federal+Reserve+more+room+to+help+a+still+weak+economy.%3C%2Fp%3E+%3Cp%3EThe+Labor+Department+said+on+Friday+the+Consumer+Price+Index+was+unchanged+last+month.+Economists+had+expected+an+increase+of+0.1+percent.%3C%2Fp%3E+%3Cp%3EPrices+spiked+earlier+in+the+year%2C+but+the+report+showed+the+trend+has+shifted.+Over+the+past+12+months%2C+prices+have+risen+3.4+percent.+That+marked+a+second+monthly+decline+from+a+three-year+high+in+September.%3C%2Fp%3E+%3Cp%3EThe+report+%22leaves+the+Fed+ample+cover+for+any+additional+monetary+policy+accommodation+they+may+see+warranted+in+the+New+Year%2C%22+said+Ian+Lyngen%2C+a+bond+strategist+at+CRT+Capital+Group+in+Stamford%2C+Connecticut.%3C%2Fp%3E+%3Cp%3EStill%2C+some+of+the+data+could+give+pause+to+policymakers+at+the+central+bank.%3C%2Fp%3E+%3Cp%3EOutside+food+and+energy%2C+prices+climbed+a+faster-than-expected+0.2+percent.+These+so-called+core+prices+rose+2.2+percent+in+the+12+months+through+November%2C+up+from+2.1+percent+in+October.%3C%2Fp%3E+%3Cp%3E%22Core+inflation+…+is+a+bit+more+persistent+than+what+some+people+had+expected%2C%22+said+Jeremy+Lawson%2C+an+economist+at+BNP+Paribas+in+New+York.%3C%2Fp%3E+%3Cp%3EEconomists+polled+by+Reuters+this+week+saw+inflation+slowing+to+2.6+percent+during+the+first+quarter+of+next+year%2C+which+could+help+convince+the+Fed+to+do+more+to+bring+down+the+country%27s+8.6+percent+unemployment+rate.%3C%2Fp%3E+%3Cp%3EPrices+for+U.S.+government+debt+rose+slightly+on+Friday+as+investors+saw+the+data+opening+the+door+a+bit+wider+to+Fed+stimulus.+U.S.+stocks+rose+and+the+dollar+fell+against+the+euro+as+investors+remained+on+edge+over+the+euro+zone%27s+debt+crisis.%3C%2Fp%3E+%3Cp%3EThe+U.S.+recovery+has+picked+up+momentum+over+the+past+few+months%2C+but+the+Fed+on+Tuesday+warned+about+turmoil+in+financial+markets+abroad+and+it+kept+the+option+of+further+monetary+action+on+the+table+%3Ca+href%3D%22http%3A%2F%2Fcash-advance-nofax.com%22%3Ecash+advance+to+savings+account%3C%2Fa%3E%3C%21–+.+–%3E.%3C%2Fp%3E+%3Cp%3EFED+EASE+STILL+IN+PLAY%3C%2Fp%3E+%3Cp%3EIn+an+appearance+before+Congress+on+Friday%2C+New+York+Federal+Reserve+Bank+President+William+Dudley+warned+that+a+worsening+of+Europe%27s+sovereign+debt+crisis+could+hit+U.S.+banks%2C+potentially+tightening+credit+for+households+and+businesses.%3C%2Fp%3E+%3Cp%3E%22Europe%27s+problems+are+a+serious+risk+for+the+U.S.+economic+outlook%2C%22+he+said.%3C%2Fp%3E+%3Cp%3EIn+recent+months%2C+cooling+gasoline+prices+have+left+more+money+for+consumers+to+spend+on+other+things%2C+helping+the+economy+gain+some+steam.+In+November+alone%2C+gasoline+prices+fell+2.4+percent.%3C%2Fp%3E+%3Cp%3EThe+effects+of+Japan%27s+earthquake+disaster+in+March%2C+which+disrupted+global+supply+chains+and+pushed+auto+prices+higher+earlier+in+the+year%2C+are+also+subsiding.+Prices+for+new+vehicles+fell+0.3+percent+in+November.%3C%2Fp%3E+%3Cp%3EPrices+for+food+rose+0.1+percent.+Within+the+core+index%2C+prices+for+apparel+jumped+0.6+percent+%2C+but+the+increase+in+the+department%27s+main+gauge+of+homeownership+costs+cooled+to+0.1+percent+from+0.2+percent+in+October.%3C%2Fp%3E+%3Cp%3EMany+economists+have+said+the+Fed+might+try+to+give+the+economy+a+bit+of+help+at+a+meeting+on+January+24-25+by+laying+out+forecasts+for+interest+rates+that+could+underscore+its+willingness+to+keep+borrowing+costs+ultra-low+for+a+prolonged+period.%3C%2Fp%3E+%3Cp%3EThe+U.S.+central+bank+has+held+overnight+interest+rates+near+zero+since+December+2008+and+has+bought+%242.3+trillion+in+government+and+mortgage-related+bonds+in+a+further+attempt+to+stimulate+a+robust+recovery.%3C%2Fp%3E+%3Cp%3EFed+watchers+also+think+the+U.S.+central+bank+could+step+up+bond+buying+later+in+2012.+A+Reuters+poll+on+Tuesday+found+most+Wall+Street+economists+think+the+central+bank+will+undertake+a+new+program+of+buying+mortgage-backed+securities.%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.reuters.com%2Fassets%2Fprint%3Faid%3DUSTRE7BE12S20111216%27+rel%3D%27nofollow%27%3ERead+more%3C%2Fa%3E%3C%2Fp%3E+

The worst drought in Texas’ history has led to the largest-ever one-year decline in the leading cattle-state’s cow herd, raising the likelihood of increased beef prices as the number of animals decline and demand remains strong.

Since Jan. 1, the number of cows in Texas has dropped by about 600,000, a 12 percent decline from the roughly 5 million cows the state had at the beginning of the year, said David Anderson, who monitors beef markets for the Texas AgriLife Extension Service. That’s likely the largest drop in the number of cows any state has ever seen, though Texas had a larger percentage decline from 1934 to 1935, when ranchers were reeling from the Great Depression and Dust Bowl, Anderson said.

Anderson said many cows were moved “somewhere there’s grass,” but lots of others were slaughtered. He said that in Texas, Oklahoma, New Mexico, Louisiana and Arkansas, about 200,000 more cattle were slaughtered this year, a 20 percent increase over last year.

That extra supply could help meet increased demand from China and other countries, but the loss of cows likely will mean fewer cattle in future years.

“Consumers are going to pay more because we’re going to have less beef,” Anderson said. “Fewer cows, calves, less beef production and increasing exports.”

The U.S. Department of Agriculture estimates that beef prices will increase up to 5.5 in 2012, in part because the number of cattle has declined. That follows a 9 percent increase in beef prices in the past year.

Oklahoma, the nation’s second-largest cattle producer, also saw about a 12 percent drop in cows, Oklahoma State University agriculture economist Derrell Peel said.

Anderson said beef production nationally will be down 4 percent next year.

In Texas, the problem is primarily due to the worst single-year drought in the state’s history. From January through November the state got just 46 percent of its normal rainfall of about 26 inches.

The drought was the result of a La Nina weather pattern, which brings drier than normal conditions to the southwestern states paydayloans. Forecasters have said La Nina is back, meaning another dry year for Texas, Oklahoma and other nearby states.

The lack of rain coupled with blistering summer heat caused pastures to wither, leaving rancher with the choice of buying feed for the cattle or selling them.

Betsy Ross, a 75-year-old rancher from the small central Texas community of Granger, said she sold all but 80 of the 225 grass-fed animals she had in January. With feed costs up 40 percent and her pasture parched, Ross said she didn’t have any other option.

“It’s not a profitable year, heavens no,” she said. “If you can’t keep them on grass when they’re grass fed you’re not going to make any money.”

About 200 miles north in Sulphur Springs, Texas, part-time rancher Dwyatt Bell said producers in his part of the state sold off up to half their herds. Bell said high prices for cattle have helped offset increases expenses, but many ranchers still are struggling to stay afloat.

“It’s been a rough year,” he said.

Across Texas, the drought has caused an estimated $5.2 billion in losses to farmers and livestock producers, and that figure is expected to rise

Nationally, the number of cows has dropped by an estimated 617,000 this year, a 2 percent decline from the 30.9 million animals on Jan. 1. That number would be larger, but states in northern plains such as North Dakota, South Dakota and Nebraska, increased their cow herd.

Anderson said it’s unclear whether high beef prices would hurt U.S. sales or limit exports. The U.S. is the world third largest consumer of beef per capita at 85.5 pounds per year. Uruguay is first at 137 pounds per capita.

“Exports have been the strongest part of beef demand all year and they’re expected to remain so but higher prices should constrain their growth,” he said.

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Asian stocks fell Thursday as Japanese business confidence and Chinese manufacturing both slipped, but European shares rose as data showing the region’s economic output contracted less than anticipated.

Benchmark oil rose to near $96 per barrel after a big slide the day before while the dollar rose against the euro but fell against the yen.

Stock markets headed higher in early European trading. Britain’s FTSE 100 rose 0.7 percent to 5,404.36. Germany’s DAX jumped 1.1 percent to 5,734.83 and France’s CAC-40 added 0.9 percent to 3,001.80.

Wall Street was headed for a higher opening, with Dow Jones industrial futures rising marginally to 11,770 and S&P 500 futures gaining slightly to 1,207.20.

The purchasing managers’ index published by financial data company Markit showed eurozone manufacturing and services output contracting for a fourth month in December, although at the slowest rate since September. The composite output index stood at 47.9 in December, up from 47.0 in November.

“The December Eurozone purchasing managers surveys are better than feared and show welcome, much-needed improvement. However, the likelihood remains that Eurozone GDP will contract in the fourth quarter, even if the decline may not be as has been feared,” said Howard Archer of IHS Global Insight in a report.

But stocks faced strong headwinds earlier in Asia as business confidence fell in Japan and Chinese manufacturing data showed a contraction, although at a slower rate.

Japan’s Nikkei 225 index shed 1.7 percent to close at 8,377.37, a three-week low. South Korea’s Kospi lost 2.1 percent to 1,819.11 and Hong Kong’s Hang Seng tumbled 1.8 percent to 18,026.84.

Mainland Chinese shares lost ground for a sixth straight trading day, with the benchmark Shanghai Composite Index falling 2.1 percent to 2,180.90, while the Shenzhen Composite Index lost 2.3 percent to 886.01.

In Japan, confidence at major manufacturers fell over the last quarter. The Bank of Japan’s “tankan” survey of business sentiment fell to minus 4.

The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavorable, with 100 representing the best mood and minus 100 the worst.

Japan’s strong yen has hit multiple historic highs this year against the dollar, making business conditions difficult for Japan’s export-reliant economy.

Meanwhile, preliminary manufacturing figures showed that Chinese factory output contracted, but at a slower rate, in December. HSBC’s purchasing manager’s index for December stood at 49 us fast cash.0, up from 47.7 in November. Any number below 50 indicates a contraction in manufacturing activity.

But the figure didn’t raise hopes that China might ease its monetary policy anytime soon.

“I don’t think there will be an interest rate cut in the short-term,” said Dickie Wong, executive director of research at Kingston Securities Ltd. in Hong Kong. “Sentiment is really bad in China.”

On Wall Street, stocks plummeted Wednesday amid a growing sense that Europe’s leaders have failed to contain that region’s debt crisis.

Since European leaders reached an agreement to rein in future government budget deficits last week, investors and credit rating agencies have criticized the deal for failing to address current problems.

Italy had to pay higher borrowing rates in its last bond auction of the year Wednesday. The third-largest economy among the 17 nations the use the euro paid 6.47 percent interest to borrow 3 billion euros ($3.95 billion) for five years _ up 0.17 percentage point from last comparable auction _ and the highest rate since the euro came into existence in 1999.

The higher rates make it more expensive for Italy to borrow money and reflect rising doubts that the country will be able to repay its debts.

Oil prices, which plunged more than $5 on Wednesday, drove down energy-related shares. South Korea’s S-Oil Corp. fell 4.7 percent. Hong Kong-listed China National Offshore Oil Corp. dropped 4.6 percent.

Asian banking shares fell on the heels of a downgrade by Fitch Ratings of five major European commercial banks and cooperative banking groups. Hong Kong-listed Industrial & Commercial Bank of China, the world’s largest bank by market value, fell 2.6 percent. Australia’s Westpac Banking Corp. fell 1.8 percent.

The Dow Jones industrial average fell 1.1 percent to close at 11,823.48 on Wednesday. The Standard & Poor’s 500 index fell 1.1 percent to 1,211.82. The Nasdaq fell 1.6 percent to 2,539.31.

Benchmark oil for January delivery was up 76 cents at $95.71 a barrel in electronic trading on the New York Mercantile Exchange. The contract declined $5.19 to finish at $94.95 per barrel on the Nymex.

In currency trading, the euro slipped to $1.2975 from $1.2977 late Wednesday in New York. The dollar slipped to 77.92 yen from 78.07 yen.

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An economic planning conference of China’s top leaders is expected to endorse fine-tuning of policies to support growth while seeking to keep inflation in check.

The powerful Politburo of the ruling Communist Party met last week and announced plans to keep a “prudent” monetary policy that would curb price hikes while adopting “pro-active” spending to promote growth. That has set the tone for the meeting in Beijing that begins Monday.

China has made headway in slowing price hikes but weak demand for exports from the European Union and U.S. has raised worries the economy may slow too quickly, worsening labor unrest just as the party prepares for a succession to a new generation of leaders next year.

Since leaders are stressing continuity, no major shifts in policy are expected from the closed door economic work conference, which reportedly will end on Wednesday.

Export growth has fallen steadily since hitting a peak of nearly 36 percent in March, and data released over the weekend showed exports slowed further in November, as did imports, with the overall trade surplus plunging 35 percent.

Adding to those concerns is a cooling of the property sector _ a mainstay of growth but also politically sensitive due to prices having surged beyond what most ordinary families can afford.

China’s economic growth abated to 9.1 percent in the July-September quarter from 9.5 percent in the first half of the year, but many economists are forecasting it will fall below 9 percent in 2012 payday loan.

“We believe the risks are skewed to the downside,” Standard Chartered Bank said in a report released Monday. It said that for China to maintain a growth rate of 8.1 percent next year, it would need to keep relatively high rates of capital investment that may prove difficult giving funding shortages for banks, property developers, local governments and many small businesses.

The report also noted China’s struggle to “rebalance” its economy toward greater reliance on domestic consumer demand, rather than exports and investment in construction.

“Despite talk of ‘rebalancing,’ progress has been limited in recent years,” the report said. The share of investment in the overall economy exceeded 50 percent last year, up from 43 percent in 2008.

Instead of the massive stimulus spending ordered in late 2008 to counter the global crisis, analysts say authorities are more likely to rely on tax cuts and administrative measures to help encourage more consumer spending.

But while Beijing strives to encourage more domestic demand and reduce its reliance on construction investment and exports to drive growth, it is also vowing to focus more on boosting its trade with emerging economies that are more dynamic than those in the U.S. and crisis stricken Europe.

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A person briefed on the matter says leaking coolant is the likely cause of fires that broke out in the Chevrolet Volt’s battery after government crash tests.

The person says General Motors engineers are developing structural changes to make the electric car and the battery pack more crash-resistant.

The person says the coolant did not catch fire, but it crystallized and created an electrical short that caused the fires. The person didn’t want to be identified because the findings are not final.

Federal safety regulators started investigating the Volt’s battery last month after three fires.

The flames came seven days to three weeks after the crash tests. GM says there’s no threat of fire right after a crash. It also says no Volts have caught fire after real-world crashes.

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The leaders of France and Germany called forcefully Monday for a new European Union treaty that would automatically punish countries that use the euro if they violate existing limits on overspending.

Stocks and the euro rose while European government bond yields dropped sharply as investors viewed the proposal for a closer fiscal union among the 17 countries as an important step to save the euro.

Implementing treaty changes could take months, but a commitment to tighter coordination could open the way for further emergency aid from the European Central Bank, the International Monetary Fund or some combination.

“Our wish is to go on a forced march toward re-establishing confidence in the eurozone,” French President Nicolas Sarkozy said at a press conference alongside German Chancellor Angela Merkel. “We don’t have time. We are conscious of the gravity of the situation and of the responsibility that rests on our shoulders.”

Investors have been hopeful that the pair will get what they want at a summit in Brussels on Friday, where failure could doom the euro.

There is a risk that implementing the proposals won’t move fast enough for markets or the most heavily indebted countries. Countries like Italy and Spain need help now to keep their bond yields _ the cost of their borrowing _ down.

Sarkozy said he and Merkel would prefer that the treaty be agreed by all 27 members of the European Union, but he left the door open to one that just covers the eurozone and anyone else “who wants to join us.”

Sarkozy and Merkel made several proposals, some of which could be enshrined in a new treaty. They included:

_ automatic punishment for any government that allows its deficit to exceed 3 percent of GDP. Governments are supposed to follow this rule already, but many, including France, have flouted it;

_ requiring countries to enshrine in law a promise to balance their budgets;

_ never again asking private investors to take losses, as a bailout of Greece did;

_ making Europe’s bailout fund permanent by the end of next year, rather than mid-2013;

_ and holding monthly European summits until the crisis is over.

Worries about the stability of the euro reached a high in recent weeks as Italy’s bond yield, indicative of the rate it would pay to borrow on markets, jumped to record peaks above 7 percent. That level is considered unsustainable and has eventually forced Greece, Ireland and Portugal to require financial aid. By comparison, bond yields in Germany, Europe’s largest and most stable economy, are roughly 2 percent.

But Europe can’t afford to rescue Italy, the eurozone’s third-largest economy, so the crisis went into high gear in recent weeks when it looked like the country might need a lifeline.

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