Iran flexes military muscle in Strait of Hormuz

During naval exercises today, Iran test-fired a surface-to-air missile near the Strait of Hormuz while also announcing it has made its first nuclear fuel rod. NBC's Ali Arouzi reports.

>>> iran's navy test fired a surface to aramis i will today during the straight of her moes. iran is backing away from closing the passageway. it's proposing to hold talks with u.s. powers about the nuclear program . however, at the same time being iran announced today, it's produced the nation's first nuclear fuel rod. that is a major feat. meantime, president obama this weekend signed a defense pill including sanctions against iran . nbc's alley arouzi is in iran for us. first, let's start with the latest on the threat to close the strait and the u.s. sanctions.

>> that's that's right. thomas. iran has been threatening to close the strait. the threatens seemed to have -- this isn't our intention at this point. then, state tv made a remarkable announcement this afternoon saying that during the last day of the exercises, which is tomorrow, the navy is going to plan a scenario to shut down the strait of hormuz tomorrow. this doesn't mean they'll impede the movement of ships. but they want to show they're able to shut it down tomorrow. tomorrow is an important day to see if the they can strategically place ships and aircraft carriers in a way to show the international community that indeed they can shut down the waterway. thomas sm.

>> let's talk about this pivotal announcement. iran making a nuclear fuel record. at the same time, proposing that talks resume on the nuclear program . what are the undercurrents of information about iran 's intentions on this?

>> well, this seems to be a carrot and stick policy that iran adopted. they want to threaten shutting down the straits of hormuz. they want to make their own nuclear fuel rods which is advancing. saying we can do this on our own, disrupt the oil supply in the world. on the other hand, they're offering a carrot saying we're willing to talk on the nuclear negotiations. people look at this as a strategy just to delay things and let iran get its own way. it's coming up to the 11th hour to get these things done. iran is trying a carrot and stick policy of its own. threatening to close the straits. but also agreeing to talk if they may come to some headway.

>> ali arouzi in tehran for us. thanks so much.