The commander's statement comes after earlier in the day the IRNA cited an Iranian Islamic Revolutionary Guard Corps (IRGC) spokesman who stated that Tehran's military forces will "firmly punish" aggressors who attack Iran.
The six-mile-long downtown Enghelab, or Revolution, Street was decorated with huge balloons as loudspeakers blared out nationalist songs.
And he vowed to overcome USA efforts to isolate Tehran.
In the capital's Azadi Square, President Hassan Rouhani dismissed US efforts to isolate Tehran while touting his country's military might.
Life-size replicas of Iranian-made cruise and ballistic missiles stood in a statement of defiance after the USA a year ago reimposed sanctions following its withdrawal from a deal on Tehran's nuclear programme.
Iranians thronged streets across the country, many with portraits of Ayatollah Ruhollah Khomeini, the Shiite cleric who toppled the Shah in the historic Islamic uprising.
Netanyahu has said in recent weeks that Israel has carried out hundreds of attacks in Syria over the past several years and would ramp up its fight following the planned withdrawal of US troops from the country.
Ballistic missile capabilities were on display during the main march, including the Qadr F, a ground-to-ground missile with a 1,950-km (1,220-mile) range, Tasnim news agency said. Tehran denies the charge, insisting its satellite launches and rocket tests do not have a military component.More news: Eden Hazard relishing Chelsea partnership with Gonzalo Higuain
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Iran even holds an annual "Death to America" rally every November to commemorate the seizure of the U.S. Embassy in 1979, leading to a 444-day hostage crisis in which the Iranian regime held 52 Americans prisoner.
"The Iranian people have and will have some economic difficulties (due to the sanctions) but we will overcome the problems by helping each other", Rouhani said.
Mahmoud Hemmati, 35, was pushing his 68-year-old mother, Parivash Fakheri, in a wheelchair.
"Perhaps worst of all, the people of Iran have suffered grievously".
Last week, Supreme Leader Ayatollah Ali Khamenei defended the "Death to America" chants, saying they are aimed at America's leaders such as Trump and not its people.
Iranian state TV anchor Mehdi Khosravi chirped how he expects John Bolton, U.S. national security adviser, to be very angry on Monday since he had once predicted that Iranians will not see the 40th anniversary of their revolution.
Pahlavi's name has been in the news often since late 2017 as some groups in Iran have called for a return of the monarchy during large nationwide demonstrations against political corruption and poor economic conditions.