Iran on Monday test-fired its long-range Shahab-3 missile which it says could hit targets in arch-foe Israel, as the Revolutionary Guards staged missile war games for the second straight day.

The exercise comes at a time of heightened tension with the West after the UN nuclear watchdog revealed on Friday that the Islamic republic was building a second uranium enrichment plant.

The Guards on Sunday launched the missile manoeuvres marking "Sacred Defence" week, which commemorates the start of the eight-year Iran-Iraq war in the 1980s.

Iran's English-language state-owned Press TV channel today broad casted footage of the Shahab-3 being fired in desert terrain.

Iran says the weapon has a range of 1,300-2,000 kilometres, which would put Israel, most Arab states and parts of Europe including much of Turkey within its range.

The Guards yesterday fired several short and medium-range missiles, some with multiple warheads, state media reported.

The medium-range Shahab-1 and Shahab-2, with a range of between 300 kilometres and 700 kilometres, were successfully launched, the Guards' air force commander Hossein Salami said.

Earlier, the Guards test-fired three types of short-range missile - the Tondar-69, Fateh-110 and Zelzal. All three weapons, powered by solid fuel, have a range of between 100 and 400 kilometres.