Iran test-fires new missile - media

TEHRAN (Reuters) - Iran has test-fired a new air-to-surface missile, Iranian media reported on Sunday, in the Islamic Republic's latest display of its military capability.

The missile test was carried out despite the offer by the administration of new U.S. President Barack Obama to engage Iran in direct talks if it "unclenches its fist".

Iran's Fars News Agency said the domestically produced missile had a range of 110 km and was designed for use by military aircraft against naval targets.

"Now these jet fighters have acquired a new capability in confronting threats," the semi-official news agency said. Iran's Press TV initially said a long-range missile had been tested, but later also used Fars' way of describing it.

Iran often stages war games or tests weapons to show its determination to counter any attack by foes such as Israel and the United States.

Israel and Washington accuse Tehran of trying to develop nuclear bombs. Iran says its nuclear programme is a peaceful drive to generate electricity so that the world's fourth-largest oil producer can export more of its gas and crude.

Israel, believed to be the only nuclear-armed Middle East state, has said Iran's nuclear plans threaten its existence and has not ruled out military action if diplomacy fails to end the dispute.

Iran has said it would respond to any attack by targeting U.S. interests and Israel, as well as closing the Strait of Hormuz, a waterway between the Gulf and the Sea of Oman through which about 40 percent of the world's traded oil is shipped.

One Western defence analyst said he believed the missile test was a signal by Iran that "we can severely disrupt traffic" in the Gulf if attacked.