Update, 12:41 pm: The fresh sanctions imposed by the United States on Iran's ballistic missile programme does not have "legal legitimacy", Iranian foreign ministry spokesperson Hossein Jaberi Ansari reportedly said.
"The US sanctions against Iran's ballistic missile program ... have no legal or moral legitimacy,' Reuters quoted Ansari as saying in a televised news conference.
"America sells tens of billions of dollars of weaponry each year to countries in the region. These weapons are used in war crimes against Palestinian, Lebanese and most recently Yemeni citizens," he said.
"Adding names to the previous list of sanctions, is not new sanctions," General Director at Tasnim News Agency quoted Ansari as saying.
The Iranian Ministry of Foreign Affairs (MFA) also said that Iran will intensify its missile programme.
"Iran will respond by following up its missile program and promote defense capabilities more seriously. Structure of sanctions has collapsed and rebuilding it is impossible. Iran will pursue constructive engagement seriously," the MFA said in a statement.
#Iran MFA statement: Structure of sanctions has collapsed & rebuilding it is impossible. Iran will pursue constructive engagement seriously.
— Abas Aslani (@abasinfo) January 18, 2016
"The Iranian missile program has by no means been designed to carry nuclear weapons and is not in contravention of any international principle," Ansari read out the statement, Press TV reported.
The United States on Sunday imposed new sanctions on Iran over the ballistic missile test conducted in October last year. The move comes just a day after the European Union and the US lifted all the economic and oil sanctions against the middle eastern country.
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on 11 entities and individuals who supplied goods for Iran's ballistic missile programme. Sanctions have been imposed on Hossein Pournaghshband and his company Mabrooka Trading in United Arab Emirates (UAE), a press release said.
"The United States is imposing sanctions on individuals and companies working to advance Iran's ballistic missile program. And we are going to remain vigilant about it. We're not going to waver in the defense of our security or that of our allies and partners," Reuters quoted US President Barack Obama as saying in a televised statement from the White House.
Iran violated a United Nations ban when it test-fired precision-guided ballistic missile in October. The UN Security Council bans Iran from developing any ballistic missiles capable of delivering a nuclear warhead, Reuters reported.
This ban will remain in place although the Joint Comprehensive Plan of Action -- a deal reached by world powers in July last year -- lifted all sanctions that had been imposed on Iran over three decades ago. Along with lifting the sanctions on Saturday, the US and Iran swapped prisoners.
"Iran's ballistic missile program poses a significant threat to regional and global security, and it will continue to be subject to international sanctions," the press release quoted Adam J Szubin, acting under secretary for terrorism and financial intelligence, as saying.
"We have consistently made clear that the United States will vigorously press sanctions against Iranian activities outside of the Joint Comprehensive Plan of Action – including those related to Iran's support for terrorism, regional destabilisation, human rights abuses, and ballistic missile program," Szubin said.
The fresh sanctions were imposed just hours after three US nationals, including the Washington Post's Jason Rezaian, were released from Tehran.