According to Iran's semiofficial FARS news agency, it quotes Adm. Abbas Zamini as saying Iran plans to deploy "light submarines" to the oil-rich sea that adjoins Iran, Russia, Kazakhstan, Turkmenistan and Azerbaijan.
The action is being taken by Iran in repsonse to its own claims that Azerbaijan is harboring anti-Iranian terrorist liked to Israel's Mossad spy agency. Azerbaijan has accused Iran of supporting Islamist dissidents. Both countries denie the other's claim.
Earlier this month Iran said it has begun the "initial stages" of designing nuclear-powered submarines.
Iran has domestically built several small submarines over the past years. It has recently overhauled one of the three non-nuclear Russian Kilo-class submarines it bought in the 1990s.
Seperately, Iran's Central Bank Governor Mahmoud Bahmani said Iran is "easily" selling oil despite U.S. sanctions because of the United States' waiver program that allows countries like China, India, Japan, Sinapore, South Korea and Turkey to contiue to buy without fear of U.S. repraisal.
Sunday the European Union's oil embargo is set to go into full force, blocking all oil purchases from Iran by all EU members.