IRAN is quietly seeking to expand its ties with Latin America in what US officials and regional experts say is an effort to beat economic sanctions and gain access to much-needed markets and raw materials.

The new diplomatic offensive, which comes amid rising tensions with Washington and European powers, includes a four-nation swing through South and Central America this month by Iranian President Mahmoud Ahmadinejad.

Iranian President Mahmoud Ahmadinejad. Credit:AFP

The visit reinforces recent commitments by Iran to invest millions of dollars in economic development projects for the region, from a mining joint venture in Ecuador to factories for petrochemicals and small-arms ammunition in Venezuela.

Iran has begun 2012 by defiantly announcing the testing of new missiles and an advance in its nuclear program, after the US unleashed fresh sanctions that sent the Islamic republic's currency to a record low.