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The Shahab 3 can easily reach Israel, and, as it's a ballistic missile, its trajectory would probably take it above the recognized airspace of Iraq and Jordan for most of its flight.

Still, with conventional warheads, they probably wouldn't be much more effective than Iraq's Scuds were, though they might be more difficult to intercept. Some are known to be equipped with cluster munitions, which could cause heavy casualties in populated areas, especially if there is little warning and civilians are caught in the open.

The only way they'd be truly effective is if they are armed with chemical or, God forbid, nuclear warheads. Even a chemical attack would almost certainly draw a nuclear retaliation from Israel, given the current political environment there. Even if they are denied the use of Arab airspace and forward refueling for strike aircraft, they still retain at least a limited nuclear strike capability through the Jericho II MRBM. They may also have the capability of delivering nuclear weapons via cruise missiles launched from either of their two Dolphin-class SSKs.

The bottom line is both countries do have the ability to strike each other without technically violating the territory or airspace of their respective neighbors. Whether they do so or not is, of course, another question.