When asked if the Ofek 7 could be used to strike Iran, Eshed said: "Intelligence is intelligence and you can do with the intelligence what the leaders decide.
"But this is definitely intelligence on the best level that it's possible to obtain from satellite systems."
The satellite weighs 30kg, is 2.3m long and will operate for at least four years, Israel Radio reported.
The launch was carried out at 2:40am (23:40 GMT), Israel Radio reported.
Ofek 7 is to replace Ofek 5, which has been orbiting for almost five years.
Ofek 5's life had to be extended when the launch of its planned replacement, Ofek 6, failed two years ago.
Israel has labelled Iran as its most serious strategic threat.