Iran's Super Torpedo Scam
That's what this article from Strategypage claims:
For decades, Iran has continually boasted of new, Iranian designed and manufactured weapons, only to have the rather more somber truth leak out later. Iran's weapons design capabilities are primitive, but the government has some excellent publicists, who always manage to grab some headlines initially, before anyone can question the basic facts behind these amazing new weapons. Take, for example, the new wonder torpedo. The Russians have not had any success convincing the world's navy that their rocket propelled torpedo is a real threat.
I'm not so sure. Could ex-Soviet scientists be working for Iran and selling them secrets, as the Germans did for us and the Russians after WW2?
Here is another skeptical article from Global Security.
Threats Watch discusses the real Iranian threat.