Defense Minister Gen. Amir Hatami said the missile hit its target in the Saturday test after traveling 1,200 kilometers (745 miles).
Iranian new cruise missile Hoveizeh is displayed during a weaponry and military equipment exhibition in Tehran.
France, one of the remaining parties in the Iran deal, condemned the attempted satellite launch and urged Iran to discontinue all ballistic missile tests, which violate United Nations resolutions.
Western experts say Iran often exaggerates its weapons capabilities, although there are concerns about its long-range ballistic missiles.
They are also considering whether to push for sanctions on Iran's ballistic missile program if talks between the two sides on the issue do not progress.
Missile needs a very short time for its preparedness and can fly at a low altitude, says Iranian defence minister.
Zarif said that the US wasn't competent to conduct negotiations, adding that one president could wholly ignore the decisions taken by another one, referring to the former President Barack Obama and Donald Trump, the current President of the U.S.More news: U.S. state governor vows to stay in office despite blackface photo
The Hoveizeh missle was shown off at a ceremony in Tehran and the private-run Tasnim News Agency published a 37-second video of the test-firing alongside its report.
UN Security Council Resolution 2231 adopted after the deal calls on Iran to refrain from testing missiles capable of carrying a nuclear weapon, but it does not specifically bar Tehran from missile launches.
Britain, France and Germany last week launched a system to facilitate non-dollar trade with Iran and avoid USA sanctions, although Iran's top judge said the system's conditions were unacceptable.
On Jan. 15, Iran's atomic energy chief said that the Islamic regime has stockpiles of uranium enriched to 20 percent purity, a level far above the 3.67 percent the Islamic regime agreed to not surpass as part of the Iran deal.
Earlier this month, the European Union approved sanctions on Iran's intelligence services and two Iranian nationals, accusing them of attempting - or carrying out - attacks against Iranian government opponents on Danish, Dutch, and French soil. USA authorities are unaware of the many other businesses that are in contact with Iran, he added.
Iran will be forced to make a "strategic leap" if European or other countries try to limit its missile might, Brigadier General Hossein Salami, the second-in-command of the Islamic Revolutionary Guard Corps, has said.
Salami said Iran's decision to limit the range and the number of its ballistic missiles was based on its current strategy, which could change based on circumstances.