Iran says it now has a missile with a range of up to 2,000 kilometers.
Iran's state-run news agency IRNA quoted former President Ali Akbar Hashemi Rafsanjani as saying Iran has the capability of launching such a missile and remains determined to further improve its military capabilities.
Military experts say they believe the old version of Iran's Shahab-3 missile had a range of 1,300 kilometers, which would allow it to strike anywhere in Israel. The new modified version with its increased range would be capable of hitting targets in parts of southeastern Europe.
Israel and the United States have developed the Arrow anti-ballistic missile system, which is capable of intercepting and destroying missiles at high altitude.
The United States also accuses Iran of secretly developing nuclear weapons. Iran strongly denies the charge.