Iran has successfully test fired a new short-range missile.

State television showed pictures of the launch of the Fateh 110, which has a range of around 180 miles, meaning it would only be able to strike Iran's immediate neighbours.

Defence Minister Ahmad Vahidi appearing on TV said: "With the fourth-generation of the Fateh 110, the armed forces of our country are able to target and destroy land and sea targets, enemy headquarters, missile sites, ammunition dumps, radars and other points.

"Using new guidance methods, target-striking systems were installed on the missiles and during the flight test... its ability to hit the target without deviation was proven," Vahidi added, saying the missile was intended as a defensive weapon.

Iranian officials have threatened in the past to close the Strait of Hormuz, the seaway through which 40 per cent of the world's sea-borne oil exports pass, in retaliation for sanctions levied against its crude exports.