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Iran will resist Trump's 'psychological warfare' - senior Guards commander to ISNA

Iranian President Hassan Rouhani attends a meeting with Muslim leaders and scholars in Hyderabad India

Trump has a history of firing off heated tweets that seem to quickly escalate long-standing disputes with leaders of nations at odds with the U.S.

Iranians on Monday shrugged off the possibility that a bellicose exchange of words between President Donald Trump and his Iranian counterpart could escalate into military conflict, but expressed growing concern America's stepped-up sanctions could damage their fragile economy.

The escalation in rhetoric came as the Trump administration has launched an offensive of speeches and online communications meant to foment unrest and help pressure Iran to end its nuclear program and its support of militant groups, according to USA officials familiar with the matter, reported Reuters.

Within hours, Iran's state-owned news agency IRNA dismissed the tweet, describing it as a "passive reaction" to Rouhani's remarks.

Larijani said Trump's remarks were not unexpected from a "foolish person like Trump".

Trump tweeted Sunday that if Iran threatened the U.S.it would "SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE".

It would be an "obvious mistake" to negotiate with the United States as Washington was unreliable, Khamenei added according to his website.

The US is seeking to tighten the economic screws on Iran, abandoning a landmark 2015 nuclear deal and reimposing stringent sanctions.

The tweet from the president follows Iranian President Hassan Rouhani cautioning the American leader on Sunday about pursuing hostile policies against Tehran, saying: "War with Iran is the mother of all wars".

He says that unlike North Korea, "Iran never moved toward a nuclear bomb" and that therefore, "Iran is angry since Trump responded to Tehran's engagement diplomacy by pulling the US out of the nuclear deal".

Trump ordered increased American sanctions after those sanctions had been suspended as part of the accord. In the meantime, the U.S.is stepping up Farsi-language outreach that is meant to support Iranians demonstrating against the policies of their government. A more significant set of sanctions that will hit Iran's oil industry and central bank by punishing countries and companies that do business with them will resume November 4.

Trump has suggested Iranian leaders are "going to call me and say "let's make a deal" but Iran has rejected talks.

"If anybody's inciting anything, look no further than to Iran", said White House press secretary Sarah Sanders said.

"This was a terrible, one-sided deal that should have never, ever been made", President Trump said of the nuclear deal.

"Now the Administration is pushing regime change & the 2 sides are exchanging threats like this", Kahl tweeted.

U.S. President Donald Trump participates in a cabinet meeting at the White House in Washington, U.S., July 18, 2018.

Ned Price, a special assistant for national security during the Obama administration, said, "as with all things Trump, it's impossible to know whether this is the result of strategy or impulsiveness". Iran was a close ally of the United States up until the revolution. "BE CAUTIOUS!", he wrote.

Iran's Foreign Minister Mohammad Javad Zarif responded Monday on Twitter, writing, "Colour US UNIMPRESSED".