On the same day Iran test-fired missiles in a show of force in the Persian Gulf, the Bush administration Wednesday sought to downplay the country’s power and influence.

“For its part, Tehran seems to relish heightening concerns by promoting the illusion that Iran is on the ascendance,” Undersecretary of State William Burns said in prepared testimony for the House Foreign Affairs Committee. “However, Iran is not 10 feet tall, nor is it even the dominant regional actor.

“Iran has no real friends anywhere that could offer strategic reassurance, vital investment, or a secure future in a globalized world.”

That statement seemed at odds with the friendly relations Iran maintains with some of its neighbors, including Iraq, Russia and Turkey — a situation committee members pointed out.

In his prepared remarks, Chairman Howard L. Berman, D-Calif., called on the United States to enforce sanctions against European countries and companies that do business with Iran.

“It is time for our European allies and their corporations to cease investing in Iran,” he said. “It’s time for them to take far more significant steps along the lines of cutting off all significant commerce with Iran, as we did years ago – or at least I thought we did.”

That last comment was a reference to an Associated Press report Tuesday that found that despite heavy sanctions, the United States sent Iran $546 million in goods from 2001 through last year.

Some items such as medicine and agricultural products are exempt, but the AP report also found that the Treasury Department has issued 2,821 licenses to trade with Iran and denied only 178 applications. Cigarettes were the largest commodity going to Iran — $158 million under President Bush, AP reported.

Burns, the No. 3 official at State, quoted President Bush in his prepared testimony to emphasize the need for continued multilateral, not unilateral efforts.

For a full version of this story and the latest coverage, please visit CQ Politics.