Benjamin Netanyahu said he would raise renewing sanctions when he meets US President Donald Trump in February.
Iran has carried out several such tests since a 2015 nuclear deal which relaxed sanctions against the country.
It is not yet clear what type of missile was launched, or if it explicitly violated the UN resolution.
A 2010 resolution, which barred Iran from undertaking any work on “ballistic missiles capable of delivering nuclear warheads”, was terminated after the nuclear deal with six world powers was implemented.
It was replaced by a new resolution, 2231, that “calls upon” Iran not to undertake any activity related to “ballistic missiles designed to be capable of delivering nuclear weapons”.
The UN Security Council is to hold a meeting on Tuesday about the missile launch, at the request of the US.
In a recorded message on his Facebook page, Mr Netanyahu said “Iranian aggression must not go unanswered”.
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