A surface-to-surface missile was on full display as thousands gathered at the former United States compound, the first time such weaponry has been on display during the annual event.
Later in the day, the semi-official Tasnim news agency, which has ties to the elite Revolutionary Guard, said the missile was a Qadr-F that has the same range as a Sejil.
On Tuesday, the head of the Revolutionary Guard said Iran's supreme leader had restricted the range of ballistic missiles manufactured in the country to 2,000 kilometres - limiting their reach to only regional targets.
Protesters beat effigies of Trump with sticks in front of the former embassy compound while what appeared to be a dummy ballistic missile was put on display in a sign of defiance following new USA sanctions. Trump's decision did not undo the agreement, which European countries and Iran continue to support, but allows Congress to decide whether to reimpose certain sanctions against the Islamic Republic.
A few months after the toppling of the US -backed government of the Shah Mohammad Reza Pahlavi, Iranian students, believing the USA embassy was being used as cover for espionage activity aimed at overthrowing the Islamic Republic, stormed the building.
Trump's administration has taken a tougher line with Iran, threatening to tear up an global accord on its nuclear programme.
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In the wheelchair event, the Swiss dominated with Manuela Schar tops among women and Marcel Hug finishing first among the men. Former victor Meb Keflezighi, who was running his final competitive marathon at age 42, finished 11th in 2:15:29.
Secretary of Iran's Supreme National Security Council (SNSC) Ali Shamkhani highlighted Washington's hostilities and conspiracies against Tehran and said the Iranian nation has set a record in humiliating the U.S. and foiling its conspiracies.
"To give in to the Americans makes them more aggressive and insolent".
Shamkhani, alluding to Trump's threats against North Korea, said even US allies know that Trump "has no power to realize his bluffs, against Iran, too".
After Iranian students seized the US embassy in Tehran in 1979, they spent years painstakingly reassembling the intelligence reports shredded by the CIA officers who were some of the last workers captured, according to the BBC.
The former United States embassy in Tehran is now a cultural centre but stands as a symbol of a U.S. defeat for many Iranians. He called the US the "eternal enemy" of Iran. Many Iranians call it the "den of spies".