During Friday's military parade, President Hassan Rouhani said his country would strengthen its missile capabilities without seeking permission from any other country.

State broadcaster IRIB carried footage of the missile test without giving its time and location.

The Tasnim news agency reported that Iran had announced a new ballistic missile with range of 2,000 km (1,200 miles), capable of carrying several warheads.

The test comes at the end of a heated week of diplomacy at the UN General Assembly, where both the United States and Israel denounced Iran and its nuclear deal with six world powers.

Tehran has test fired a new ballistic missile in a show of defiance against President Trumps UN speech he gave last Tuesday. "We will increase our military strength", he said.

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Trump put Iran "on notice" in February for test-firing a ballistic missile and imposed new economic sanctions in July over its missile program and "malign activities" in the Middle East.

Tehran is not pursuing construction of its existing heavy water research reactor and has not enriched uranium above the agreed 3.67-percent limit, the report concluded, adding that Iran's stockpile of low-enriched uranium (which can be used for peaceful purposes unless further processed for a nuclear weapon) was 101.7kg - considerably lower than the agreed level of 300kg.

The test comes at the end of a heated week of diplomacy at the UN General Assembly in NY, where US President Donald Trump again accused Iran of destabilizing the Middle East, calling it a "rogue state whose chief exports are violence, bloodshed and chaos".

In April, American President Donald Trump ordered a review of whether a suspension of sanctions on Iran related to the nuclear deal, negotiated under President Barack Obama, was in the United States national security interest. Since his speech, Trump has been receiving sharp responses from angered leaders not just from Iran but also from other nations.

It comes after the USA announced fresh sanctions on Iran in July over its ballistic missile programme.

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The Iranian president said the military power is exclusively aimed at defending the country and the region against aggressors and terrorists, stressing that no one can stop Tehran from developing its conventional armaments.

Trump has until October 15 to certify to Congress that Iran has complied with the accord, a decision he must make every 90 days.

Trump's administration has twice certified that Iran is complying with its obligations under the accord.

"The truth is, the Iran deal has so many flaws that it's tempting to leave it", she said. His remarks are likely to reinforce America's belief that Iran has violated the terms of its nuclear deal with the West.

Commander of Iran's air force, General Amir Ali Hag'izadh, said, "The missile Hormshr is a great achievement of the Iranian Ministry of Defense".

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Chinese Foreign Minister Wang Yi said tensions on the Korean peninsula underlined the importance of the Iranian deal, and that China would continue to support it.