Reuters is reporting that the Iranian Defense minister — joined by President Mahmoud Ahmadinejad himself — presented the weapons at a ceremony to the world.
The President insisted that the new missiles — a new generation of Fateh-110 missiles, with a range of around 180 miles — were exclusively for defensive possibilities.
Since the missile is land-to-land, it can't be mounted on a plane or submarine to close in on distance. And since Tel Aviv is 980 miles from Tehran, this kind of missile can't be used offensively against Israel.
Instead, it's likely a hedge against the possibility of an internal land war. It could, with a stretch, hit populated areas of Iraq or Afghanistan. Still, though, a short range missile with excellent accuracy isn't a huge threat to U.S. interests in the area, unless those interests enter Iran.
The claims of advanced accuracy are disputed by some experts, though — a senior fellow at the International Institute for Strategies Studies told Reuters that the guidance system is "crude" and only operates during the first phase of the missile's flight.
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