Iran test-fired a missile capable of reaching Israel early this morning, as part of war games that escalate the sabre-rattling between the Islamic Republic and the West. The new version of the Shahab-3 missile was one of nine medium and long-range missiles launched from the desert during wider war gaming in the Strait of Hormuz, a vital waterway off the south of the country through which passes about 40 per cent of the world's oil.