President Hassan Rouhani addressed the parade in Tehran, saying Iran would not halt its missile programme and would continue to boost military capabilities.
This came as Iran displayed a new missile at a military parade marking the anniversary of the outbreak of its devastating 1980-1988 war with Saddam Hussein's Iraq.
But the USA has argued Iran's missile tests breach a United Nations resolution, which endorsed the nuclear deal.
According to Tasnim news agency, the missile is able to carry a multiple independently tar reentry vehicle (MIRV) weighing 1,800 kilograms.
The agreement reached during the Obama era was hailed a historic step for diplomatic relations between the two countries, as Iran promised to limit its nuclear power in exchange for the lifting of economic sanctions.
Israel's Defence Minister Avigdor Lieberman on Saturday denounced Iran's testing of a medium-range missile as a "provocation" and said it was proof of Tehran's ambition to become a world power.
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Rouhani warned Wednesday that his country will "respond decisively" to any violation of the agreement and called President Donald Trump's "ignorant, absurd and hateful rhetoric'' about Iran unfit for the United Nations".
Speaking a day later, Mr Rouhani said the Iranian people were waiting for an apology from Mr Trump for his "extremely offensive" rhetoric and "unfounded" allegations about Iran.
"We will increase our military power as a deterrent".
Trump's administration has twice certified that Iran is complying with its obligations under the accord.
Tehran has argued that the missile is exclusively for defensive purposes and is not a menace for any country in the region.
Critics have pointed to the Iran deal, officially named the Joint Plan of Action, as ensuring that Iran will obtain a nuclear weapon.
This news with the test arrives merely hrs following Iran's parading this rocket which in a military services celebration within Tehran. In a speech before congress in 2015, he described it as a "very bad deal" that "could well threaten the survival of my country".
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