Ali Akbar Velayati, who advises Iran's Supreme Leader Ayatollah Ali Khamenei on foreign affairs, rejected the idea that Iran had breached the 2015 nuclear accord with world powers.

The United States continued to fire at Iran on Wednesday during a White House press briefing, accusing Tehran of supporting terrorism, illegal arms deals, and reiterating its belief that Iran violated UN Resolution 2231 with its ballistic missile test firing.

Mr Trump and his national security adviser Michael Flynn did not elaborate on what retaliatory actions the USA could pursue.

"Iran has been formally PUT ON NOTICE for firing a ballistic missile", Trump wrote, adding a reference to the 2015 agreement restricting Tehran's nuclear capabilities in exchange for the lifting of US sanctions. When it went into effect in 2016, the Security Council lifted most United Nations sanctions against Iran, including a 2010 ban on testing missiles capable of carrying nuclear warheads.

"There should be no doubt that the USA is committed to holding Iran accountable for adhering to missile restrictions and accountable for behaviour in the region that we consider to be destabilising", a senior administration official told reporters yesterday.

"If you're going to make a threat, you need to be prepared to carry through with it", said Fred Kagan, an analyst with the American Enterprise Institute. As part of the deal, Iran agreed to limit its nuclear program to get relief from sanctions.

The White House did not specify what countermeasures it is considering or what further action would trigger retaliation.

Sen. Bob Corker (R-Tenn.), chairman of the Foreign Relations Committee, says it's about time the United States started pushing back on Iran over its ballistic missile launches as well as what Iran is doing in Yemen, Syria and elsewhere in the Middle East.

The remarks about Iran by the new Republican president echoes the warnings made repeatedly by former President George W. Bush who said he will never take any option off the table.

Analysts said Iran could interpret Flynn's warning as bluster given that the Trump administration is still formulating a response.

Iran's missiles, he said, are "not designed for the capability of carrying a nuclear warhead".

Trump put Iran "on notice". "It is clear that Iran will no longer be given a pass and will be held accountable for its illicit behavior", Corker said in a statement after the meeting.

Citing a series of Iranian Government sponsored attacks by Houthi forces on Emirati and Saudi vessels, Flynn said Iran continues to threaten US friends and allies in the region.