The missile, dubbed Saeqeh-1 (Lightning-1) and designed by the national aerospace industry, was remarkable for its accuracy, range and adaptability to various geographical conditions, the communique said.

It called the new development "a bold movethat will surely alarm the United States and Israel," Iran's arch foes.

Iran, which is under a western arms embargo since the Islamic revolution of 1979, has reacted by designing and manufacturing its own sophisticated weaponry, including missiles, submarines and helicopters and claims to be approaching self-sufficiency in defence.