'Not much' of a nuclear deal after Iran tests missile: Trump

Iran's test launch of new medium-range missile calls into question a landmark nuclear deal with the United States and other world powers, President Donald Trump said on Saturday, while also accusing the Islamic republic of colluding with North Korea.

"Iran just test-fired a Ballistic Missile capable of reaching Israel.They are also working with North Korea.Not much of an agreement we have!" Trump tweeted.

The nose cone of the missile has a range of 1,250 miles (2,000 kilometers) and can carry multiple warheads.

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

Previous Iranian missile launches have triggered US sanctions and accusations that they violate the spirit of the 2015 nuclear deal between Tehran and major powers.

The US president has threatened to declare Iran to be in breach of the 2015 deal unless it is expanded to punish Iran for pursuing a ballistic missile program and for sponsoring foreign militant groups.

But Iran has remained defiant despite criticism from the US and France.

On Friday, President Rouhani vowed to boost the country's ballistic missile capabilities in a speech marking the anniversary of the outbreak of Iran's devastating 1980-1988 war with Saddam Hussein's Iraq.

"Whether you like it or not, we are going to strengthen our military capabilities which are necessary for deterrence," Rouhani said.

"We will strengthen not only our missiles but also our air, land and sea forces... When it comes to defending our country, we will ask nobody for their permission."

As well as carrying out missile tests, Iran has also launched a space satellite and fired missiles at Islamic State group targets in eastern Syria in recent months.

Iran is caught in an arms race with regional rival Saudi Arabia, while nemesis Israel has been increasingly bellicose in their language against Tehran under Prime Minister Binyamin Netanyahu.

Agencies contributed to this report.