Iranian Defense Minister Ahmad Vahidi denied Wednesday the Islamic republic is planning to develop ballistic missiles capable of striking the U.S., as alleged by Washington.

"We have no such plans," Vahidi told the official IRNA news agency, describing the allegations as "part of the enemy's psychological warfare."

Vahidi was reacting to Tuesday comments by a senior
U.S. official James Miller, principal deputy undersecretary of defense for policy, who told a senate hearing Iran could by 2015 develop missiles that could strike the U.S.

Miller added that his assessment assumed "foreign assistance" to enable
Iran to improve its missile technology.

A report last year from the U.S. Air Force National Air and Space Intelligence Centre had postulated that
Iran could build an intercontinental ballistic missile that could hit U.S. soil by 2015-2018, if it received outside help.

Analysts say
Iran 's Safir (Ambassador) space launch vehicle, which Tehran put into orbit in February 2009, has the potential to be converted into a long-range missile.

Vahidi, however, said Wednesday Iran was producing an air defense system equipped with aerial radar, and a domestically produced missile having a range of 40 kilometers and an altitude of 20 kilometers.

Washington closely follows Iran 's missile programme and has cited threats from Tehran and North Korea as the main impetus for building missile defense systems for the U.S. and its allies.

The
U.S. administration also accuses Tehran of a clandestine effort to build nuclear weapons. Iran vehemently denies this.