The Pentagon has dismissed a media report that the US Navy is secretly planning war on Iran, The Army Times reported yesterday.

The Pentagon was responding to a Time magazine report published on Sept. 18, which said Chief of Naval Operations Mike Mullen had asked subordinates to put "fresh eyes" on old U.S. plans to blockade two Iranian oil ports on the Gulf.

The order allegedly came after the Navy first issued a "prepare to deploy" order to a submarine, an Aegis-class cruiser, two mine-sweepers and two mine hunters, the magazine reported.

However, the Pentagon denied such planning and said it hopes relations with Iran could improve through dialogue, not military action.

"We're going to approach the concerns that we and the international community have with Iran diplomatically," Pentagon spokesman Bryan Whitman said Tuesday.

"Time will tell," he added.