His comments come a day after the two countries hailed the implementation of Tehran's nuclear deal, with President Barack Obama saying the breakthrough was vindication of his contentious policy of engagement with Iran.
However, underlining the lingering deep suspicions between the two sides, Iran seized 10 sailors last week in the Gulf after their boats strayed into Iranian waters and held them overnight. They were freed on Wednesday after Iran accepted they entered by mistake.
"I was very angry, I was very frustrated and angry that that was released," Kerry told CNN, saying the footage was released by the Iranian military or Revolutionary Guards, not the government.
"But I am not excusing it, there was no excuse for it. Our sailors regretably, and inadvertently, went into Iranian waters."
Also Read
The strongly worded remarks came as the US military released its first detailed account of the incident, which threatened to spark a renewed crisis between Tehran and Washington.
"This stop occurred in Iranian territorial waters, although it's not clear the crew was aware of their exact location. While the RCBs were stopped and the crew was attempting to evaluate the mechanical issue, Iranian boats approached the vessels."
CENTCOM said that there was soon four Iranian vessels at the scene, all with armed personnel aboard and after a conversation between the two sides armed Iranian military boarded the RCBs.