Iran dismisses new US sanctions, calls White House 'retarded'

In a speech broadcast live on state television, Rouhani said sanctions against Khamenei would fail because he had no assets abroad. Rouhani described the latest round of sanctions as a sign of US desperation.

"The White House actions mean it is mentally retarded," he said, "Tehran's strategic patience does not mean we have fear."

Rouhani also said, latest sanctions showed Washington is "lying" about offering to negotiate.

"At the same time as you call for negotiations, you seek to sanction the foreign minister? It's obvious that you're lying."

His comments came after US National Security Advisor John Bolton said Washington had "held the door open to real negotiations" but that "in response, Iran's silence has been deafening."

The United States imposed sanctions Monday on Iran's supreme leader Ayatollah Ali Khamenei and others, which the Iranian foreign ministry said meant a "permanent closure of the path to diplomacy" with the US administration.

Tensions are running high after Iran shot down a US spy drone last week and Trump considered, then cancelled a retaliatory strike.

Bolton said Tuesday the US remains open to negotiations, more than a year after Washington pulled out of a landmark nuclear deal between Tehran and world powers.

"All that Iran needs to do is to walk through that open door," he said.

Tensions have soared after Iran last week shot down a US surveillance drone that Tehran insists had ventured into its airspace -- a claim rejected by Washington.