Designed and manufactured by the Aerospace Industries Organization, Hoveizeh has a range of over 1,350 kilometers that is created to be used against ground targets.
In recent weeks, the argument between Iran and European nations over Tehran's missile program has increased. The carrier vehicle for the satellite uses similar technology to an intercontinental ballistic missile, triggering concerns that Tehran is developing weapons that can reach the United States and Europe.
While US officials admit that Iran has kept to the deal, Mr Trump has blasted the document for being too lenient as it did not also address the country's ballistic missile programme or stop what Washington sees as regional interference.
The Hoveizeh cruise missile was test-fired and managed to accurately hit targets at a distance of 1,200 kilometers, he said.
Tehran should refrain in particular from any work on missiles created to be capable of delivering a nuclear weapon, the European Union said.
U.S. President Donald Trump withdrew from the 2015 nuclear deal with Iran in May of a year ago, accusing Tehran, among other things, of working to develop its long-range ballistic missile program.
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.
But Tehran denies seeking any nuclear weapons capability, and insists that its missile development programme is "purely defensive" and compliant with the resolution.
On Wednesday, Iran announced the production of large amounts of yellowcake, a precursor to enriched uranium. The measure froze the assets of an Iranian intelligence unit and two of its staff.
It says its missiles are defensive and used for deterrence and rejected talks over its missile programme.
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.
France said last month it was ready to impose further sanctions on Iran if no progress was made in talks about the missiles.
"If today the Europeans or others try to plot and pursue Iran's missile disarmament, then we will be forced to resort to a strategic leap", said Brigadier General Hossein Salami, deputy head of the elite Revolutionary Guard, according to the Fars news agency.