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US President Donald Trump threatened on Tuesday an “obliteration” against parts of Iran if they will try to carry out an attack on anything that involves American interests.

“Any attack by Iran on anything American will be met with great and overwhelming force,” Mr. Trump wrote on Twitter. “In some areas, overwhelming will mean obliteration.”

The warning came after Trump announced largely symbolic economic sanctions against Iranian Supreme Leader Ayatollah Ali Khamenei and other Iranian officials for allegedly orchestrating hostile conduct.

The tension between two leading countries escalated when Iran downed last week an unpiloted U.S spy drone above the Strait of Hormuz and Trump abruptly called off a retaliatory air strike claiming that many people would have been killed.

U.S. National Security Adviser John Bolton said Tuesday that Iran could walk through an “open door” to talks with America. But he also warned that “all options remain on the table” if Iran violates terms of the 2015 nuclear deal.

Iranian President Hassan Rouhani, a pragmatist who won two elections with promise to open Iran up to the world, rejected the new sanctions and even said the White House is suffering from “mental retardation” which Trump called a “very ignorant and insulting statement.”

The insult was similar to the harsh words North Korean leader Kim Jong Un used to attack Trump in September 2017, when he called the American president “mentally deranged US dotard”.

“Tehran’s strategic patience does not mean we have fear,” said Mr Rouhani.

“I’ll tell you what the message is: When they’re ready, they have to let us know,” Trump said. “Whatever they want to do, I’m ready.”

“Iran’s very ignorant and insulting statement, put out today, only shows that they do not understand reality,” Trump wrote.