Iranian officials described the missile as having a 1,240-mile range with a 1,500kg (3,300lb) warhead.
They also released undated video footage purportedly showing a successful launch of the missile.
The Khorramshahr-4 is named after an Iranian city that was the scene of heavy fighting during the Iran-Iraq War in the 1980s.
The missile is also called Kheibar after a Jewish fortress conquered by the Muslims in the seventh century in what is now Saudi Arabia. Regional tensions likely played a role in Iran’s missile display on Thursday.
A miniature example of Jerusalem’s golden Dome of the Rock on the Al-Aqsa Mosque compound, a holy site in both Islam and Judaism that Jews call the Temple Mount, stood next to the mobile launcher.
Iran views Israel as its archenemy and is arming anti-Israeli militant groups in the Palestinian territories and surrounding countries.
Tensions between the two nations are high, particularly as Iran enriches uranium closer than ever to weapons-grade levels.
The Khorramshahr would be able to reach Israel.
It remains unclear, however, why the missile has been called Khorramshahr-4 as only two other variants of the missile are publicly known. It is modeled after North Korea’s Musudan ballistic missile.
United state department spokesman in person of Matthew Miller said Washington was aware of the missile report and reiterated that “Iran’s development and proliferation of ballistic missiles pose a serious threat to regional and international security.”
“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.”