Iran also displayed other home-made advanced missiles, including ballistic missiles, which are reported to have ranges of 1,300 km to 2,000 km.
President Donald Trump accused Iran at the U.N. General Assembly of building "dangerous" missiles and exporting violence to Yemen, Syria and other parts of the Middle East.
France said on Saturday it was extremely concerned by Iran's ballistic missile test and called on U.N. Secretary-General Antonio Guterres to carry out a full report on the launch.
Addressing an armed forces parade in Tehran on September 22, marking the anniversary of the outbreak of the 1980-88 war with Iraq, Rohani pledged to build as many missiles as deemed necessary for deterrence and to reinforce other sections of Iran's armed forces. "We will increase our military strength", he said.
There has been some sympathy for the United States position from France, whose President Emmanuel Macron said the deal could be expanded to ban missile tests and cut a sunset clause in the nuclear agreement that would see Iran resume some uranium enrichment from 2025.
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"Iran just test-fired a Ballistic Missile capable of reaching Israel", Trump wrote. Now that the United States has fully displayed its nature, the government should use all its options to defend the Iranian nation's interests. The Trump administration had also said, though grudgingly, that Iran was complying.
Rouhani hit back at Trump's comments at the United Nations and condemned Israel for opposing the 2015 nuclear deal. Britain, China, France, Germany and Russian Federation are parties to the pact.
"We will not put up with threats and intimidation, we believe in negotiations and moderation", he continued, referring to US President Donald Trump's speech.
Trump has suggested that the Iranian missiles might be used for carrying a nuclear warhead, the allegations which Iran has rejected. Thousands of worshipers marched after Friday prayers in Tehran, chanting "Death to America" and "Death to Israel". Gen. Amir Hatami, said in remarks carried by state television.
The nuclear deal between Iran and world powers does not strictly prohibit Iran from developing missiles but after the deal came into effect last year, the UN Security Council adopted a resolution calling on Iran not to take any actions related to ballistic missiles "designed to be capable of delivering nuclear weapons" for eight years.