Iran says that the IRGC Navy will send its vessels, which usually include hundreds of fast boats of varying type and quality.
The naval commander said that the exercise involved a mix of above-the-surface naval vessels, submarines and aircraft.
The missile was fired at about 6:20 p.m. (0920 GMT) from around the North Korean city of Nampo.
Top Israeli officials have all made direct threats against Iran. US-Israeli F-35 aircraft drills have helped make this option a possibility.
The scenario was run by United Hatzalah, Fire and Rescue services, the Israeli Police, the municipality, Mayanei Hayeshua Medical Center and other emergency and security forces.
Israel and the US launched a joint air force drill this week.
The Jerusalem Post joined an IDF drill in the sand dunes near the Gaza border.
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