The Iranian parliament voted Sunday for allocating $520 million on the development of its own missile program in response to United States sanctions, Agence France-Presse (AFP) reported.
On August 2, US President Donald Trump signed into law a bill by Congress that imposes new sanctions against Russia, Iran and North Korea.
The bill cites "hostile" US policies against Iran, and American "adventurism in the region aimed at creating divisions", Tasnim reported.
A total of 240 lawmakers voted for the bill, out of the 244 parliamentarians present.
Iranian MPs shouted "death to America" after Speaker Ali Larijani announced the result of the vote.
Iran's parliament on Sunday approved an increased budget for the country's ballistic missile programme and the regional operations of its Revolutionary Guard, in defiance of U.S. sanctions imposed last month over Tehran's testing of new missile technology.
The legislators stressed that the bill does not violate the 2015 nuclear deal between Iran and major world powers, but accused Washington of attempts to "kill" the landmark agreement.
He further said American officials should be aware that the legislation was just the first step against anti-Iran measures.
Citing recent USA sanctions and "adventurism", Tehran plans to bolster its ballistic missile system as tensions rise.
A second vote will now take place on the bill before it is submitted to a clerical body for final approval.
"The bill has very wisely tried not to violate the JCPOA [Joint Comprehensive Plan of Action] and also give no chance to the other party to manipulate it", Deputy Foreign Minister Abbas Araqchi said, as cited by IRNA news agency.
It considers the entirety of the USA military forces and intelligence operatives in the region to be supporters of regional terrorist groups, and subject to punitive measures.