The Iranian Revolutionary Guards have successfully test-fired a Shahab-3 missile, whose range puts it within reach of Israel, state media have said.
Iran has tested a Shahab-3 missile with a range of 2,000 km (1,240 miles), according to TV reports.
The missile, said to have a range of 2,000 km (1,240 miles), was one of nine fired from an undisclosed desert site.
It was one of nine missiles tested at a undisclosed desert location, and has sufficient range to reach Israel.
Two other types of missile with shorter ranges were also fired as part of the Great Prophet III war games.
Two other types of missile with shorter ranges were also fired as part of the Great Prophet III war games.
It comes amid rising tensions between Iran and the US and Israel over Iran's nuclear programme.
"We are ready to defend the integrity of the Iranian nation," said Revolutionary Guards air force commander Hossein Salami.
"We are ready to defend the integrity of the Iranian nation," said Hossein Salami, head of the Guards' air force.
Earlier, an adviser to Iran's Supreme Leader, Ayatollah Ali Khamenei, said it would respond to any military attack by hitting the Israeli city of Tel Aviv.
The US also announced new financial sanctions on Iranian officials it suspected of involvement in the country's nuclear programme.
Among those targeted were a senior scientist at the defence ministry, Mohsen Fakhrizadeh-Mahabadi, and three companies related to the arms industry.