Iran said on Monday it had manufactured laser-guided artillery shells that were capable of spotting and hitting moving targets with a high degree of precision, state-run television reported.

Iran does periodically unveil military advancements, but this latest report comes as tension between Iran and the West escalates over Iran's disputed nuclear programme.

Defence Minister Ahmad Vahidi hailed what he described as intelligent munitions as a new chapter in the country's weapons and military equipment.

Besides America and Russia, there are only three other countries which have this technology, Vahidi was quoted as saying during the unveiling ceremony.

State television also showed footage of the shell, called Basir (insightful), being fired by an artillery piece. No more details were given in the report.

(Writing by Ramin Mostafavi; Editing by Alison Williams)