Western powers working to curb Iran's nuclear ambitions voiced "acute concern" Tuesday over the Islamic Republic's technological leap in launching its first home-built satellite into orbit.
The technology for launching satellites "is very similar to ballistic (missile) capabilities," said French foreign ministry spokesman Eric Chevallier.
"We can't but link this to the very serious concerns about the development of military nuclear capability."
In Washington, the new administration of President Barack Obama said Iran's action would not advance stability in the Middle East region.
"Efforts to develop missile delivery capability, efforts to continue an illicit nuclear programme, or threats that Iran makes towards Israel and its sponsorshop of terror are of acute concern to this administration," said White House spokesman Robert Gibbs.
Iran sent its Omid (Hope) satellite into space on Monday evening carried by the home-built Safir-2 space rocket, local news agencies reported.
A US official, speaking to AFP on condition of anonymity, confirmed that "it appears that the Iranians conducted a launch of a low-orbit satellite."
German Foreign Minister Frank-Walter Steinmeier called it a "worrying development" which showed "the technical achievements that Iran is obviously capable of and the threats."
Iranian President Mahmoud Ahmedinajad Tuesday hailed the launch, declaring his country has "officially achieved a presence in space."
But its timing also heightened concerns in the international community.
The launch announcement came on the eve of a meeting in Germany of senior diplomats from the five permanent member states of the UN Security Council plus Germany which have been trying to end the nuclear standoff with Iran.
Despite UN sanctions Tehran continues to defy calls to freeze its uranium enrichment.
The West suspects Iran of wanting enriched uranium to build a nuclear weapon, a charge Tehran denies claiming its nuclear work is for peaceful energy purposes.
"We have been trying for years to stop Iran from developing its own nuclear program and its own nuclear weapons. So far we have not succeeded," said Steinmeier, noting that joint efforts with Washington were even more urgent.
British Foreign Office Minister Bill Rammell said Iran's satellite launch just underscored and illustrated "our serious concerns about Iran's intentions."
It also "sends the wrong signal to the international community which has already passed five successive UN Security Council resolutions on Iran's nuclear and ballistic missile programme," Rammell said in a statement.
US Secretary of State Hillary Clinton also warned Iran that while "President Obama has signaled his intention to support tough and direct diplomacy with Iran," if Tehran does not abide by UN resolutions "there must be consequences."
A NATO officer Tuesday noted that if Iran's satellite launch is confirmed it would mean that Tehran has missiles capable of striking Israel and also southeast Europe.
As Iran's arch-foe in the Mideast, Israel sees Tehran's nuclear drive as a major threat, and on Tuesday the Israeli defence minister urged Washington not to exclude the option of military action against the Islamic Republic.
"We must reach a strategic understanding with the United States on the essence of Iran's nuclear programme and make sure that even if they choose a diplomatic track to halt it, the talks must be limited to a short time and then harsh sanctions and readiness to take action," Ehud Barak said in a speech.
Gibbs said the Obama administration "will use all elements of our national power to deal with Iran and to help it be a responsible member of the international community."
Ahmadinejad however dismissed suggestions Iran's space programme has military goals, saying the satellite carried a message of "peace and brotherhood" to the world.
"We have a divine view of technology unlike the dominating powers of the world who have Satanic views," he said.
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