It comes after the Iranian President said "war with Iran is the mother of all wars and peace with Iran is the mother of all peace"
Donald Trump has warned Iran to "never, ever" threaten the US again - warning the country of severe "consequences".
The US President issued the all-capitals threat on Twitter late on Sunday night US time, directing it at Iranian President Hassan Rouhani.
To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!— Donald J. Trump (@realDonaldTrump) July 23, 2018
It appeared to be a response to remarks made by the Iranian leader in a speech to diplomats in Tehran.
According to the ISNA news agency, President Rouhani claimed the Trump administration is "fighting the world and its own national interests at the same time".
He said: "Iran's power is deterrent and we have no fight or war with anybody but the enemies must understand well that war with Iran is the mother of all wars and peace with Iran is the mother of all peace. We have never been intimidated and will respond threat with threat.
"Mr Trump! We are the people of dignity and guarantor of security of the waterway of the region throughout the history. Don't play with the lion's tail; you will regret it".
He also accused the US leader of being 'inexperienced'.
Iranian leaders over the weekend threatened to block Gulf oil exports if its own exports are stopped, Reuters reports.
US Secretary of State Mike Pompeo, meanwhile, also criticised Iran in a speech yesterday - accusing the regime of planning terrorist attacks in Europe.
The US has taken a more hostile approach towards Iran under President Trump, most notably withdrawing from the international nuclear deal with the country.
Under the deal, the Iranian government agreed to limit its nuclear programme - with the other parties (including China, Russia and the EU) agreeing to lift sanctions on the country in return.
US allies sharply criticised the Trump administration's decision to withdraw from the agreement in March.
Iran's oil exports could drop by up to two-thirds by the end of the year because of US sanctions being reimposed due to the Trump administrations' withdrawal from the nuclear deal.
Additional reporting by IRN