"As of today, we are officially putting Iran on notice", national security adviser Mike Flynn told reporters during a daily press briefing.
Oil advanced in the wake of Flynn's comments, with the cost of a barrel rising 1.7 percent to $53.70 at 2:21 p.m. EST.
UN Resolution 2231, which was passed shortly after the nuclear deal was signed in July 2015, calls on Iran "not to undertake any activity related to ballistic missiles created to be capable of delivering nuclear weapons, including launches using such ballistic missile technology".
"No Iranian missiles have been produced to carry nuclear warheads", said Zarif, speaking at a joint news conference held with Ayrault in Tehran.
The UN Security Council met on Tuesday to review the matter and confirmed that the test occurred.
Iran is the subject of a United Nations Security Council resolution prohibiting tests of ballistic missiles created to deliver a nuclear warhead. Following the Tuesday session, Nikki Haley, the new US ambassador to the United Nations, said the world should be "alarmed" by the test and called for unspecified U.N. action. Part of the deal was the elimination of previous resolutions prohibiting all ballistic-missile activity.
The Shahab-3 was launched as part of a military exercise, according to one official. It said the Iranians were plainly "testing Trump", who last week, in a phone conversation with Netanyahu, said the two would consult closely to address "the threats posed by Iran". It noted that Iran's Defense Minister Brigadier Gen. Hossein Dehqhan said four months ago that Iran would start producing the missile.
Trump, as a presidential candidate, was deeply critical of the landmark 2015 nuclear deal with Iran, calling it "the worst deal ever negotiated". "Iran will never use missiles produced in Iran to attack any other country".
The media arm of the Shiite rebels, also known as the Houthis, said the vessel was believed to belong to the Saudi Arabian navy.
The Obama administration slapped sanctions on Iran in January 2016 after a series of Iranian test launches.
The Trump administration's statements hewed closely to the views of the Saudi government, whose King Salman spoke with Trump on Sunday, in holding its archenemy Iran responsible for the Houthi rebellion.
"Iran continues to threaten U.S. friends and allies in the region", Flynn said. "This support risks expanding and intensifying the conflict in Yemen, which is not good for the people of the area, creates further instability, risks greater violence and will lead to unending conflict".
"The Obama administration failed to respond adequately to Tehran's malign actions - including weapons transfers, support for terrorism and other violations of global norms", Flynn said at the White House.
"There are a large number of options available to the administration", he said.
"We're looking into that", he said. We are not going to stand by.
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