JERUSALEM, Israel -- Iran continues to develop its short-and long-range missiles -- now more accurate and deadly than ever, the Pentagon said in a report submitted to Congress.

The June 29 report, submitted to four congressional defense committees under Secretary of Defense Leon Panetta's signature, says "Iran has boosted the lethality and effectiveness" of its existing missile systems and has added "new ships and submarines" to its fleet, Bloomberg News reported.

The Pentagon provides a classified and unclassified assessment of Iran's military power annually in compliance with a 2010 directive.

The latest report affirms Iran supplies aid to the Hamas and Hezbollah terror groups in the Gaza Strip and Lebanon, respectively, to Iraqi Shiite groups and to Syria.

According to the report, Iran will have the technical capability to test fly an intercontinental ballistic missile by 2015, if it continues to receive "sufficient foreign assistance."

Iran has deployed a new solid-fuel, intermediate-range ballistic missile while improving and refining the accuracy of its Shahab-3, said Anthony Cordesman of the Center for Strategic and International Studies in Washington.

According to the Pentagon, over the past 30 years, Iran "has methodically cultivated a network of sponsored terrorist surrogates capable of targeting U.S. and Israeli interests."

"We suspect this activity continues," the report states.

Iran is also strengthening its defensive capabilities, "suggesting any action on Iranian soil "will carry risk."