Iran successfully tested a Ghader ground-to-ship cruise missile on the last day of navy war games near the Strait of Hormuz.
This missile built by Iranian experts successfully hit its target and destroyed it.
It was "the first time" a Ghader missile had been tested.
The Ghader missile, also known as the Qader, is said to have a range of 200 kilometres (120 miles), which is generally considered medium-range or even short-range for a cruise missile, even though IRNA described it as "long-range."
The navy was to test two other types of missiles later on Monday, a surface-to-surface Nour missile also with a range of 200 kilometres, and a Nasr anti-ship missile with a shorter range.
The Ghader is said to be entirely built by Iran.
The Nour and Nasr missiles are based on Chinese designs.
The Nour, also known as the Noor, is based on China's C-802 missile.
The Nour missile to be fired "has been improved with its anti-radar and targeting system,"
An Iranian Nour missile was reportedly used by the Iran-linked Hezbollah militia in Lebanon to disable an Israeli warship during a 2006 conflict.
The Nasr anti-ship missile is based on China's C-704 missile and has a range of 35 kilometres (22 miles).
Iran, the second-biggest producer in Opec after Saudi Arabia, depends on oil sales for 80 percent of its foreign currency earnings.
