Special Report: U.S. presidential election 2008

    WASHINGTON, July 9 (Xinhua) -- The two U.S. presidential candidates on Wednesday voiced their different policies on dealing with threats from Iran, with Barack Obama emphasizing diplomacy and sanctions, while John McCain underlined the establishment of a missile shield in Europe.

    In an interview with ABC's "Good Morning America", presumptive Democratic nominee Obama said Iran's reported missile tests justify the need to conduct direct diplomacy with the country and impose tougher economic sanctions, combined with strong incentives to change Tehran's behavior.

U.S. Democratic presidential candidate Senator Barack Obama makes remarks during a League of United Latin American Citizens conference in Washington, July 8, 2008.  (Xinhua/Reuters Photo) Photo Gallery>>>

    The Illinois senator was responding to a report earlier in the day that said the Iranian government had tested nine long and medium-range missiles, an act that intended to show Iran's "enemies" its "resolve and might", as an Iranian military official put it.

    Obama said he would listen to his national security team to decide whether "this indicates any new capabilities on Iran's part."

    In response to another report released Tuesday that said U.S. exports to Iran rose more than tenfold under President George W. Bush despite hostility between the two countries, Obama criticized the Republican government for using bellicose language against Tehran while at the same time increasing exports to the country.

    "It's that kind of mixed signal that has led to the kind of situation that we're in right now," he said.

U.S. Republican presidential candidate Senator John McCain addresses a League of United Latin American Citizens conference in Washington, July 8, 2008. (Xinhua/Reuters Photo) Photo Gallery>>>

    Meanwhile, presumptive Republican presidential nominee McCain said in a prepared statement that the Iranian missile tests were proof of the need to build a missile defense system in Europe.

    "Working with our European and regional allies is the best way to meet the threat posed by Iran, not unilateral concessions that undermine multilateral diplomacy," he said.

    The Vietnam veteran has criticized Obama's stated policy of engaging Iran through direct talks as "naive."

    After prolonged negotiations, the U.S. government on Tuesday finally signed an agreement with the Czech Republic on the installation of a radar base on Czech soil as part of a U.S. missile defense system in the region.

    The United States has also claimed a "tentative agreement" with Poland on the deployment of a missile defense shield there. But Poland said an agreement has not been finalized yet.