Rouhani's nationally televised speech at the parade - which commemorates the Iran-Iraq War of 1980-88 - and the show of force were a direct display of defiance toward President Trump, who signed a bill in August imposing mandatory penalties on those involved in Iran's ballistic missile program and anyone who does business with them.
The ballistic missile, which is Iran's third type of missile with a range of 2,000 kilometers along with the Qadr-F and Sejjil ballistic missiles, is capable of carrying multiple warheads.
Iran says all of its missiles are created to carry conventional warheads only and has limited their range to a maximum of 2,000 km, although commanders say they have the technology to go further.
Friday's parade also showcased various Iranian army units and Revolutionary Guard forces, as well as the police.
"We will increase our military power as a deterrent", he said.
"Iran just test-fired a Ballistic Missile capable of reaching Israel".
"We need nobody's permission to defend our territories", he said.
Trump criticises Iran over its recent ballistic missile test
They are also working with North Korea. "Not much of an agreement we have", Trump wrote in the Twitter message. Nitze School of Advanced International Studies at Johns Hopkins University.
He said Tehran was bringing stability to the region.
Iran's defense minister said Saturday that foreign pressures would not affect Iran's missile program. Naji calls the missile test a "borderline case" for the United Nations Security Council.
"Iran can be expected to continue to push the deal's limits, commit violations and seek interpretations that are unfounded", the report said.
But Iran is still subject to an arms embargo and other restrictions, which are not technically part of the nuclear agreement. Britain, China, France, Germany and Russian Federation are parties to the pact.
Later on Friday, Iranians staged anti-Trump protest to show their anger over the U.S. president's speech.
Iran denies that its missile development breaches the resolution and says its missiles are not created to carry nuclear weapons. Thousands of worshippers marched after Friday prayers in Tehran, chanting "Death to America" and "Death to Israel". The Iranians took heavy loss but fought back at any cost to recapture the city, which they did.
US officials say such "malign activities" go against the spirit of the 2015 agreement under which Iran won relief from global sanctions in exchange for shelving its nuclear program.