[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2008/images/07/08/art.economy.gi.jpg caption="Obama and McCain have reacted to the Iran missile test."](CNN) - Presumptive Republican presidential nominee John McCain said Wednesday Iran's missile test showcases the need for implementing a more effective missile defense system while his Democratic counterpart, Barack Obama, said the event highlights the need for more aggressive diplomacy with the rogue nation.

Watch: Iran tests missiles

"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 said in a statement. "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."

"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 also said.

Obama, who has faced criticism for saying he would directly sit down with sworn enemies of the United States, told CBS Wednesday morning the test underscores the need for direct diplomacy.

"At this point, the report is unclear, it's still early," he said on CBS' The Early Show. "What this underscores is the need for a clear policy that is putting the burden on Iran to change behavior. And frankly, we just have not been able to do that the last several years, partly because we're not engaged in direct diplomacy."

Obama also said he will continue to push for an incentive package that seeks to deter Iran from its nuclear goals.

Full story