The sanctions target 13 people and 12 companies, including groups in China, Lebanon and the United Arab Emirates.
President Trump tweeted earlier: "Iran is playing with fire - they don't appreciate how 'kind' President Obama was to them. Not me!"
Iran called the threats from "an inexperienced person" useless, vowing to impose reciprocal measures.
John Smith, the US Treasury Department's acting sanctions chief, said in a statement on Friday: "Iran's continued support for terrorism and development of its ballistic missile programme poses a threat to the region, to our partners worldwide and to the United States."
This administration is filled with officials whose are fixated on Iran, such as National Security Advisor Michael Flynn or Defence Secretary James Mattis.
Mr Obama focused on fostering a tone that wouldn't jeopardise the Islamic Republic's commitment to the nuclear deal. He rarely referred to Iran's paramilitary activities in the region.
But the Treasury Department's mention on Friday of "Iran's malign activity abroad" was a reference to Iranian support for Shia militias and involvement in countries such as Syria and Iraq.
There may be still be echoes of Obama's policies here, but the whole framework of the approach has changed and Mr Trump and his team are signalling clearly they want to cut Iran to size.
They are the first Iran sanctions of Mr Trump's new presidency, and come a day after he said "nothing is off the table" in dealing with the country.
Oil prices rose as markets factored in the announcement.
He said this conduct had only
increased since the "very favourable" nuclear deal that six world
powers struck two years ago with Iran to halt its nuclear programme.
"The days of turning a blind
eye to Iran's hostile and belligerent actions toward the United States and the
world community are over," he added.
The White House says the missile
launch violated a UN Security Council resolution proscribing missiles that
could carry a nuclear device.
Speaking during a visit to Japan on
Saturday, US Defence Secretary Jim Mattis said he was not considering
increasing the number of US troops in the Middle East to address the Iran
issue.
"I don't think it's
necessary," he said.
"We have seen [Iran's]
misconduct, their misbehaviour, and it's got to be addressed at some
point," Mr Mattis added.
'Legal
restrictions'
But Tehran said it was the US
sanctions that breached the UN resolution, which endorsed the 2015 nuclear
deal.
Iran's Foreign Minister Mohammad
Javad Zarif tweeted on Friday that the Islamic Republic was unmoved by US
threats.
"Will never initiate war, but
we can only rely on our own means of defence," Mr Zarif wrote.
The Iranian foreign ministry later
said Tehran would "impose legal restrictions on a number of American
individuals and companies which have been involved in creating and supporting
extremist terrorist groups or are helping in the killing and oppression of
defenceless people in the region".
It said the names would be announced
later.
The Republican Speaker of the US
House of Representatives, Paul Ryan, applauded Mr Trump on his administration's
"swift and decisive response", in a statement on Twitter.
More than a dozen US senators from
both main parties wrote on Thursday to the president, urging "full
enforcement of existing sanctions and the imposition of additional sanctions on
Iran".
Image copyright AFP Image caption The
USS Cole, a Navy destroyer, has reportedly moved closer to Yemen to monitor an
Iran-aligned militia
Meanwhile, Saudi Arabia's senior
military advisor, Maj Gen Ahmed al Assiri, told the BBC it was time to change
Iran's behaviour in the region.
Speaking in the Saudi capital
Riyadh, he said Tehran's involvement in neighbouring countries such as Iraq,
Syria and Yemen must be stopped.
Gen Assiri, who advises the Saudi
defence minister, said Iran must be "brought back to its borders".
Iran - long an arch-foe of Saudi
Arabia - says its presence across the region is always at the request of the
governments.
The sanctions came as the US moved a
Navy destroyer closer to the coast of Yemen to guard waterways from the
Iran-aligned Houthi militia, Reuters news agency reports.
Also on Friday, Iran announced a ban
against US wrestlers from competing at a championship in the western Iranian
city of Kermanshah later this month.
The ban was in response to Mr
Trump's executive order temporarily barring travel to the US for Iranian
citizens, as well as citizens of six other majority-Muslim countries.

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