Iran announces 'reciprocal action' to US sanctions

Tehran : Iran announced it will take "reciprocal action" against US individuals and companies after President Donald Trump's administration on Friday imposed new sanctions on Tehran over its weapons procurement network.

"In response to the new move by the United States of America and as a reciprocal action, (Iran) will impose legal limitations for some American individuals and companies that have had a role in the creation and support of extreme terrorist groups in the region," the foreign ministry said.

"The names of these individuals and companies will be announced later," it said in a statement.

"Missile development and capabilities of the country, which is merely designed for defensive objectives and carrying conventional weapons and that will never be used except for legitimate defence, is the right of the people of Iran based on international law and the UN charter," the ministry said.

The fresh US measures were in response to Iran's latest ballistic missile test and its support for Huthi rebels in Yemen who in the past week targeted a Saudi warship, US officials said.

The additional US sanctions list three trading networks and individuals allegedly involved in supplying Iran's missile programme.

Iran last Sunday test-fired a medium range missile, which the White House contends violated a UN Security Council resolution proscribing missiles that could carry a nuclear device.

The Islamic republic has confirmed it tested a ballistic missile but denied it was a breach of a 2015 nuclear deal with world powers or UN resolutions.

"The action was in line with boosting Iran's defence power and is not in contradiction with the JCPOA (the nuclear deal) or (Security Council) Resolution 2231," said Defence Minister Hossein Dehghan.

Tehran says its missiles do not breach UN resolutions because they are for defence purposes only and are not designed to carry nuclear warheads.