"We consider that to be continued ballistic missile development," State Department spokeswoman Heather Nauert told reporters. "We consider this to be provocative action."
Nauert added that if confirmed, the test could be a "violation of UN Security Council resolutions."
Iranian state television broadcast footage of the takeoff from the Imam Khomeini space center, named after the late founder of the Islamic republic, in Semnan province in the east of the country.
The report said the launch vehicle, named Simorgh after a bird in Iranian mythology, was capable of propelling a satellite weighing 250 kilograms (550 pounds) to an altitude of 500 kilometres (300 miles) above earth.
Tensions have mounted between Washington and Tehran since US President Donald Trump took office six months ago.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)