According to Iranian state television, the rocket launched into space Thursday can carry a 550-pound payload. The Simorgh satellite carrier would be able to put satellites weighing as much as 250 kg at an orbit about 500 km above the Earth's surface, according to Tasnim news agency.
Iranian President Hassan Rouhani had downplayed the new move by Congress.
"Today, space science is very important for us and the greater our scientific power is, the greater will be our sovereignty and dignity", he wrote.
The US has said that launch flouted a UN Security Council resolution because the technology is inherently created to be able to carry a nuclear payload.
"Nauert also called Iran's rocket launch a "provocative action" that violated the "spirit" of the 2015 nuclear deal".
'The US government will continue to aggressively counter Iran´s ballistic missile-related activity, whether it be a provocative space launch. or likely support to Yemeni Houthi missile attacks on Saudi Arabia such as occurred this past weekend, ' Mnuchin said.
Resolution 2231 (2015) provides for the termination of the provisions of previous Security Council resolutions on the Iranian nuclear program, and 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. "We consider that to be continued ballistic missile development", she added.
The sanctions come a day after Iran successfully launched its most advanced satellite-carrying rocket into space, in what was a major advancement for the country's space programme. This is done despite the rocket clearly not being a nuclear missile, Iran have a nuclear deal which precludes them being able to make a missile, and despite claims the rocket doesn't even work.