Barack Obama pointed to a new missile test Wednesday by Iran as a reason to open diplomatic relations with the country, while John McCain said the test indicates a need for a strong missile defense system based in Europe.

Both candidates pointed to sanctions as a way to put pressure on the country's government, as they staked out their latest positions on an issue that has largely shaped each candidate's foreign policy approach.

Iranian state television reported that Iran test-fired nine long- and medium-range missiles that officials said were aimed at showing the country's ability to counter Israeli or American attacks. The country is in a protracted diplomatic battle over its nuclear program, which it says is for peaceful energy purposes, but which the U.S. and its allies believe otherwise.

Asked on morning shows about the news, Obama cautioned that the reports about the missile tests were still coming in, but said the current method of dealing with Iran appears broken.

"I would want to talk to the national security team to find out whether this indicates any new capabilities on Iran's part. At this point, the reports aren't clear. It's still early," Obama told CBS' "Early Show."

"But I think what this underscores is the need for us to create a kind of policy that is putting the burden on Iran to change behavior. And, frankly, we just have not been able to do that over the last several years. Partly because we're not engaged in direct diplomacy," he said.

His campaign released a statement saying: "These missile tests demonstrate once again that we need to change our policy to deal aggressively with the threat posed by the Iranian regime.

"Now is the time to work with our friends and allies, and to pursue direct and aggressive diplomacy with the Iranian regime backed by tougher unilateral and multilateral sanctions. It's time to offer the Iranians a clear choice between increased costs for continuing their troubling behavior, and concrete incentives that would come if they change course."

McCain told reporters in South Park, Pa., that the reported tests prove Iran is a threat to the surrounding region.

"Channels of communication have been open and will remain open, but the time has now come for effective sanctions on Iran," he said. "Diplomacy plays a key role ... but history shows us when nations embark on paths that can jeopardize the security of the region and the world then other action besides diplomacy has to be contemplated and taken, and that's why meaningful and impactful sanctions are called for at this time."

McCain said there is "continuing, mounting evidence that Iran is pursuing the acquisition of nuclear weapons," a statement that appears at odds with a December U.S. intelligence report that concluded the country's nuclear weapons program was halted in the fall of 2003.

In a statement, McCain said: "Iran's most recent missile tests demonstrate again the dangers it poses to its neighbors and to the wider region, especially Israel. Ballistic missile testing coupled with Iran's continued refusal to cease its nuclear activities should unite the international community in efforts to counter Iran's dangerous ambitions."

McCain also raised the issue of a U.S. missile defense system that is under development in Europe, and which on Tuesday was the subject of a military threat by Russia. Russia said it would have to take military action if an agreement over the system were ratified between the Czech Republic and the United States.

"Iran's missile tests also demonstrate the need for effective missile defense now and in the future, and this includes missile defense in Europe as is planned with the Czech Republic and Poland," McCain said.

McCain also took aim at Obama, whom he criticizes for his plans to open direct diplomacy with Iran. "Working with our European and regional allies is the best way to meet the threat posed by Iran, not unilateral concessions that undermine multilateral diplomacy," McCain said.

On Tuesday, McCain addressed a question over American exports to Iran, but his initial response -- which he said was an intended joke -- drew a scolding from his wife, Cindy.

"Maybe that’s a way of killing them," McCain told reporters about the export of some $158 million in cigarettes to Iran in recent years. His wife, sitting next to him at a Pittsburgh sandwich shop, poked his back without looking up.

"I meant that as a joke," McCain quickly explained. "As a person who hasn't had a cigarette in 28 years," he began to say, when his wife corrected him: 29 years.

Taking a more serious tone, McCain said, "I'd like to look into" details of exports to Iran. "This is the first that I’ve heard about it," he said.

Obama said the trade report shows a discrepancy in U.S. policy toward Iran.

"There's a story that exports from the United States to Iran have actually increased during the Bush years. So we've been combining bellicose rhetoric with not very effective action. And that's one of the things that I'd like to change when I'm president," Obama said.

The Associated Press contributed to this report.