Iran said yesterday it carried out a successful field test of the latest version of its Shahab-3 medium-range ballistic missile, which defence experts say can reach Israel or US bases in the Gulf.

Defence Minister Ali Shamkhani said last week Iran was working to improve the range and accuracy of the Shahab-3 in response to Israel's moves to boost its anti-missile capability.

The defence ministry, in a brief statement carried on the official news agency IRNA, said the test of the new Shahab-3 "was carried out successfully... The pre-determined targets were hit in the testing," it said.

Iran says its missile programme is purely for deterrent purposes. Tehran also denies US and Israeli accusations that it is seeking to develop nuclear warheads which could be delivered by the Shahab-3.

Based on the North Korean Nodong-1 and modified with Russian technology, the Shahab-3 is thought to have a range of 1,300 kilometres which would allow it to strike anywhere in Israel.

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