The digging of the graves appears to be a show of bravado after the chairman of the US Joint Chiefs of Staff, Admiral Mike Mullen, said last week that the US military has a contingency plan to attack Iran, although he thinks a military strike is probably a bad idea, reports the Canadian Press.
In an interview, former Iranian General Hossein Kan'ani Moghadam said the graves have been dug in Iran's southwestern Khuzestan province.
Moghadam said this is the same area where Iran buried Iraqi soldiers killed during the 1980 to 1988 war with Iraqi leader Saddam Hussein's regime.
Moghadam also said if US forces attack, Iran will have no choice but to strike American bases in other countries in the region.
The war of words between the United States and Iran has intensified since the UN Security Council imposed a fourth round of sanctions against Iran in June for its refusal to stop uranium enrichment.
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