The news of the test comes just hours after Iran's Revolutionary Guard unveiled the missile during a military parade in Tehran.
The UN watchdog monitoring Iran's nuclear activities confirmed earlier this month that the country is fully in compliance with its 2015 nuclear agreement with world powers, even as Donald Trump, who labelled it "the worst deal ever", threatens to scrap it.
According to Tasnim news agency, the missile is able to carry a multiple independently tar reentry vehicle (MIRV) weighing 1,800 kilograms. "We will increase our military strength", he said.
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Trump told the U.N. General Assembly on Tuesday that Iran was building its missile capability and accused it of exporting violence to Yemen, Syria and other parts of the Middle East.
While the perspective of Iran can be understood from the above addresses by Rouhani, Donald Trump, on the other hand, criticized the role of Iran in supporting the terrorist groups and blatantly regarded Tehran as a "regime of corrupt dictatorship". "Israel will defend itself with the full force of our arms and the full power of our convictions", Netanyahu said at the UN.
It comes after the United States announced fresh sanctions on Iran in July over its ballistic missile programme and what it claimed was the country's support for terror organisations.
Trump has, on several occasions, vowed to take a tougher line toward Iran than his predecessor, and threatened to renegotiate or even dismantle the nuclear deal, and shoot Iranian boats out of the water if they provoke U.S. naval vessels in the Persian Gulf.
President Trump has promised over and over again to adopt a much harder line in the direction of Iran, intimidating at numerous time to negotiate or maybe take apart this 2015 nuclear option, as well as blast Iranian boats out from the waters should they pressure United states naval ships. His remarks are likely to reinforce America's belief that Iran has violated the terms of its nuclear deal with the West.
Russian Foreign Minister Sergei Lavrov said on Thursday that the US imposition of unilateral sanctions on Iran was 'illegitimate and undermines the collective nature of worldwide efforts'.