Venezuelan President Hugo Chavez said on Monday that Venezuela's intelligence agencies have "infiltrated" a group of military officials at the U.S. embassy who were allegedly involved in spying.

"The military officials of the U.S. Embassy are involved in espionage and we have them infiltrated," said Chavez, urging the U.S. embassy to stop spying as "we are watching you."

The Venezuelan authorities accused a group of military officials at the U.S. embassy in Venezuela of involvement in a spying case during which several Venezuelan officers allegedly passed sensitive information to Washington.

The espionage allegations by Venezuela have increased tension between Caracas and Washington. Chavez threatened last week to arrest any American officials caught spying on the Venezuelan military.

Source: Xinhua