Arab sources say Israel is looking to establish a new military base in the Red Sea so it can launch nuclear-tipped cruise missiles at enemy nations from submarines recently purchased from Germany.

A report by the Office of the Arab Boycott of Israel said the Jewish state may have some concerns about its ability to deter aggression by Iran. The report also said Israel, which considers Iran its chief rival in the region, had tested nuclear-capable cruise missiles last year, launching them from three Dolphin-class diesel-electric submarines built by a German shipbuilder.

The boycott office said the details would be presented to the Arab foreign ministries meeting in Cairo next month.

In October, WorldNetDaily reported that Israel had acquired the last of three subs purchased from Germany. Israeli government officials had elected to speed up delivery of the final sub in an effort to bolster its deterrent power and to win a larger regional war, if necessary, WND reported.

Western intelligence reports say Israel has been engineering its submarines to become capable of launching conventional or nuclear-tipped cruise missiles, in a bid to provide the Israel Defense Force a multi-tiered, land-attack capability against an enemy -- similar to the defensive strategy developed years ago by the United States and Russia.

According to the most recent Arab report and earlier reports by WND, the Israeli missiles -- which may have a 1,500 kilometers (930 mile) range -- hit all targets during missile firing tests off the coast of Sri Lanka last May.

WND attempted to contact Israeli embassy officials in Washington, D.C., without success.

Israeli military officials, the Arab report said, are becoming increasingly concerned with Iran's burgeoning military power and weapons development programs, many of which are now indigenous.

In particular, the Jewish state is alarmed over Tehran's successful test firing of its latest ballistic missile -- the Shahab-3 -- which is said to have a range of between 1,200-1,500 kilometers (720-930 miles). Intelligence reports said the missile is based on the North Korean NoDong I.

Iran successfully tested the Shahab-3 July 15, 2000, followed by another test firing Sept. 21. Tehran is also working with the North Koreans to develop the Shahab-4 and Shahab-5, the later having intercontinental capabilities.

The Arab report said Israel had decided to look for a Red Sea base because officials say a base in the Mediterranean Sea, the Persian Gulf or the Arabian Sea could create security and strategic vulnerabilities.

Also, the report said Israel had loaded its Dolphin subs with four surface-to-surface missiles capable of delivering nuclear payloads.

Israeli officials deny reports the military has either tested sub-launched weapons or is adding a naval nuclear deterrent to its military capabilities.

Israel has long been suspected of being a nuclear state but has never publicly admitted it possessed nuclear weapons and the delivery systems for them.

The Jewish state has reportedly developed two cruise missiles -- the Popeye Turbo, with a range of 200 kilometers, and the longer-range Delilah, which reportedly can hit targets up to 400 kilometers. The missiles allegedly tested in July had a reported range of 1,500 miles.

Israel's Dolphin subs can remain submerged for up to 30 days, and if capable of launching nuclear missiles, could provide the deterrent factor against Iran and other regional enemies being sought by Israel Defense Force commanders, experts say.

The new subs will reportedly replace Israel's three aging German submarines, which entered service in 1977. The vessels can accommodate a crew of 35 for more than one month of continuous operations.

The Dolphin class is designed for interdiction, surveillance and special-forces operations and is designed to travel at maximum speeds of 20 knots with a cruising range of 4,500 nautical miles. The vessel has 10 torpedo tubes and is capable of launching Harpoon missiles, according to Stratfor.com, a military and economic intelligence firm based in Texas.

Iran is set to acquire more Russian-built Kilo class submarines as part of recent weapons deals it has signed with Moscow.

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