El Baradei and U.N. urge continued diplomacy to deal with Iran's nuclear ambitions as it tests new missile which can reach Israel

The IRCG air-force commander, General Hossein Salami, told Khabar that the new missile was among "Iran's new missile generation" and more modern than the previous Iranian missile types.

He said that the missile, tested in southern Iran, could carry multiple warheads and simultaneously hit several targets. It had a variable range and was able to escape radar systems. The missile was a "remarkable achievement" by the Iranian defence ministry.

Iran's Shahab-3 missiles reportedly have a range of between 1 300km to 2 000km and are in the hands of the IRGC.

They have caused grave concern in Israel, which is within their range. Teheran has assured the international community that the missiles are for defensive purposes only.

Iran announced last year that it had successfully tested a new engine using solid fuel in order to increase the range.

The week-long "Holy Prophet" naval manoeuvre started on Friday in the northern coasts of the Gulf and more than 17 000 armed forces took part in the war games.

The manoeuvre came less than two days after the United Nations Security Council issued a deadline urging Iran to suspend all uranium enrichment activities within 30 days. -- Sapa-DPA