Iran now possesses the technology for designing and production of various kinds of light underwater vessels... this vessel has been designed for the shallow waters of the Persian Gulf

Admiral Shamkhani

It can accommodate a two-man crew and up to three divers.

Correspondents say Iran has been working towards self-sufficiency in weapons manufacture ever since its war with Iraq in the 1980s.

IRNA quoted the Iranian Defence Minister, Admiral Ali Shamkhani, as saying that the submarine was designed for the shallow waters of the Gulf.

US embargo

The admiral went on to tell those present at the launching ceremony that Iran hoped to sell it to other countries.

Iran bought its weaponry from the United States until the 1979 Islamic revolution, but Washington subsequently imposed an embargo on further sales, which severely handicapped the Iranian armed forces during the war with Iraq.

As well as buying what supplies and equipment it could on the blackmarket, Iran launched a self-sufficiency drive which has so far enabled it to produced light machine guns, missiles, armoured personnel carriers and tanks.

The submarine is thought to be among the most sophisticated pieces of military equipment it has developed.