IAI's Gabriel 5 surface-to-surface missile can hit mobile and stationary targets, on land or at sea.
The drill comes as Israel warns of Iran’s growing presence in the Red Sea.
The drill involved a Dolphin-class submarine and two corvettes and included a number of scenarios in the Red Sea, sending a message to Iran of Israel's naval might.
Defense Ministry deal with Israel Shipyards is the first to be signed in 15 years.
Since 2019, Israel has been using naval weapons to strike vessels which were either Iranian or carried Iranian cargo as they made their way to Syria, according to the report.
"My grandmother always emphasized that he was not a Nazi," said Gerloff, a Christian whose parents immigrated to Israel 25 years ago, about the relative.
According to Arab intelligence that confirmed the reports, the submarine passed the Red Sea and was making its way towards the Persian Gulf.
"Luckily, I saw a soldier from the other side. That's when I realized 'whoa, where am I?'"
The new corvette was built with asymmetric warfare in mind as missile ships must contend with threats from the shore.
One of four Sa'ar 6 ships currently being made for the IDF will be arriving in Israel in early December.