Iran has test-fired a medium-range ballistic missile, the first launch of its kind since President Donald Trump took office, according to two USA defense officials.
Flynn and other officials said the launch violated U.N. Security Council Resolution 2231, which gave global blessing to the Iran nuclear deal.
Oil advanced in the wake of Flynn's comments, with the cost of a barrel rising 1.7 percent to $53.70 at 2:21 p.m. EST.
During the campaign, he took several stances on the Iran nuclear deal signed by Barack Obama and other world powers in 2015, vowing to strictly police the agreement or renegotiate it entirely.
The government in Tehran says that because it doesn't have a nuclear-weapons program its missile tests are not violations of this clause.
The UN Security Council met on Tuesday to review the matter and confirmed that the test occurred.
U.N. Resolution 2231, passed shortly after the nuclear deal was signed, 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".
The U.S. "is not naive, we're not going to stand by, you will see us call them out as we said we would and we will act accordingly", Haley said. The new resolution states "Iran is called upon not to undertake any activity related to ballistic missiles created to be capable of delivering nuclear weapons, including launches using such ballistic missile technology".
The U.S. Mission to the United Nations said it wanted the U.N.'s most powerful body to discuss Sunday's launch of a medium-range missile.
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"I intend to raise with him the renewal of sanctions against Iran, sanctions against the ballistic missiles and additional sanctions against terror and also to take care of this failed nuclear agreement", Netanyahu said.
During the US political campaign a year ago, Republican candidate Trump repeatedly condemned the global powers' nuclear agreement with Iran as a "terrible" deal, and threatened to dissolve the pact.
The Trump administration said Wednesday that it would hold Iran "accountable" for its recent ballistic-missile launch, threatening an unspecified response to what it called a violation of United Nations restrictions. The subject of ballistic missiles is not addressed in the Joint Comprehensive Plan of Action, better known as the Iran deal.
This only "called upon" Iran not to test-fire missiles that could be used to deliver nuclear weapons.
The Obama administration slapped sanctions on Iran in January 2016 after a series of Iranian test launches.
On Monday, a Saudi warship patrolling off the Yemen coast was attacked by a rebel "suicide boat" that exploded after striking the ship.
"We are hereby putting Iran on notice", General Flynn said. "There are a large range of options available. from financial and economic to pursuing other options related to support for those that are challenging and opposing Iranian malign activity in the region", one official said.
The official said that the White House had received "input" from the State Department and other agencies before making the Iran announcement and that they would be included in ongoing deliberations about further steps.
"We're looking into that", he said.
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