The US President issued an order overnight that kept renewed travel restrictions on Iran, along with seven other countries.
The ban covers nearly all visas from Iran, except for students and exchange visitors.
Donald Trump also took to Twitter in an attack on the Middle East state. He wrote: “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!”
The comment refers to an agreement made by the then US President Barack Obama in 2015, along with the UK, France, Russia, China, Germany and the European Union in which Iran agreed to give up the means to make nuclear weapons.
In return, the US and its allies would reduce long-term economic sanctions on Tehran.
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That agreement now looks to be in tatters after the test firing.
Iranian President Hassan Rouhani said on Friday: “We will increase our military power as a deterrent. We will strengthen our missile capabilities.”
Principal MENA analyst at Verisk Maplecroft Torbjorn Soltvedt told CNBC: “As Iran’s missile program is beyond the scope of the 2015 nuclear agreement, both sides have seized on the issue to assert their national interests while still operating within the confines of the deal.
“For Rouhani, reasserting Iran’s ballistic missile ambitions provides cover against hard-line critics that see the nuclear agreement as a capitulation to world powers.
“The net result is that Washington and Tehran are accusing each other of not living up to the spirit of the nuclear agreement.”
Iran’s missile test would also worsen the country’s relations with its Middle East rivals.
He said: “There is no doubt that Iran is in the ascendancy in the geopolitical battle for influence in the Middle East. Iran’s ongoing efforts to boost its ballistic missile capabilities will only heighten the sense of insecurity among regional rivals.
“While Iran’s more assertive regional stance has put it on a collision course first and foremost with Saudi Arabia and the US, the pivotal role it plays in the Syrian conflict is also increasingly raising tensions with Israel.”
Along with the missile test Iran has also started military exercises in a telling move close to the region of Kurdistan where an independence referendum is currently taking place.
Iranian state broadcaster IRIB said that the exercises are centred in the Oshnavieh border region and involve armoured, airborne and artillery units.
Iran, along with Turkey and Iraq, have voiced opposition to the referendum.