TEHERAN - IRAN'S military on Thursday test-fired more missiles in the Gulf, the website of state television reported, on the third day of war games that have added to tensions with the West.

'On the third day of Great Prophet manouevres in the Persian Gulf the most significant events were the firing of shore-to-sea, suface-to-surface and sea-to-air missiles,' it said.

It said the war games also included the firing of the Hoot (Whale) torpedo that Iran unveiled in April 2006 which it described then as a super-fast weapon capable of hitting enemy submarines.

'We express concern over the relevant situation in the Middle East,' foreign ministry spokesman Liu Jianchao told reporters in response to a question on Iran's missile test on Wednesday.

'The situation in the Middle East is complicated and sensitive and we hope that the relevant parties' activities will contribute to the peace and stability in the region.'

Iran on Wednesday test-fired its Shahab-3 missile, whose longer range puts Israel within reach. The United States led Western condemnation of the tests, saying it would reinforce suspicions over Teheran's military ambitions at a time when world powers are seeking to resolve a long-running nuclear standoff.

But it played down prospects of war with Iran, stressing that world powers were seeking a diplomatic solution to the dispute over Teheran's nuclear programmes. China also emphasised its desire for a peaceful solution.

'We hope that dialogue and negotiations will be the main channel to solve the Iranian nuclear issue,' Mr Liu said.

Japan calls for self-restraint from Iran after missile test
Japan on Thursday urged Iran to show restraint after it tested a missile capable of reaching Israel, warning that the move could bolster the case for slapping for international sanctions against Tehran.

Japan 'strongly calls for self-restraint on this kind of action, which only puts regional peace and stability at a disadvantage,' Chief Cabinet Secretary Nobutaka Machimura, the government's top spokesman, told reporters.

The test coincided with the end of the Group of Eight (G8) summit in Japan, which brought together the leaders of the world's eight most industrialised nations.

'I wonder what kind of international sense they have in launching (the missile) purposely on the last day of the summit,' Mr Machimura said.

'It is because they take this kind of action that discussion about imposing sanctions on Iran is intensified,' he added.