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As of 0401 GMT Tuesday, the Iran government can no longer buy USA banknotes and broad sanctions will be slapped on Iranian industries, including its rug exports.

He was responding to a July 22 warning from Rouhani that the US should not "play with the lion's tail" and warned that any conflict with Iran would be the "mother of all wars".

Speaking at a White House news conference on July 30, Trump had said, "I would certainly meet with Iran if they wanted to meet".

Both Trump and Rouhani are due to address the United Nations General Assembly in NY next month. "I do believe that they will probably end up wanting to meet".

Takht Ravanchi said any compensatory measure by the EU must take place before the USA sanctions, because any European action will be totally useless once the US sanctions come into force and the customers refrain from buying Iran's oil.

The U.S. also has banned imports of Iranian products such as carpets and pistachios and revoked licenses that allowed Iran to purchase U.S. and European aircraft.

Protesters in the Iranian capital swarmed its historic Grand Bazaar on Monday, news agencies reported, and forced shopkeepers to close their stalls in apparent anger over the Islamic Republic's troubled economy, months after similar demonstrations rocked the country.

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The United States has also been seeking the release of three locally employed embassy staff detained in Turkey. He said the sanctions are meant to show Turkey that the United States is "serious" about the issue.

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Motahari, renowned for not mincing his words, has dismissed Jafari's remarks as unwarranted, reiterating, "You [Gen.] and our other good "mujahid" brothers in IRGC are aware of the fact that in issues concerning talks with the United States, or refrain from any negotiations with it, IRGC should obey the decision made by top authorities of the regime and avoid making personal comments".

Or the regime could start to address what America calls its "malign influence" in the region, including its support to Syrian President Bashar Assad and threats to shut down the strategic Strait of Hormuz, a vital shipping lane for global oil supplies.

People in Shiraz, Isfahan, Mashhad, Karaj, Ahvaz, and Rasht joined the protests that started on Tuesday mainly in Karaj and Isfahan over high inflation and unemployment.

"It should be discussed in the Supreme National Security Council", said Nategh Nouri, who is also a former aide to Supreme Leader Ayatollah Ali Khamenei.

The authenticity of the videos could not immediately be verified. There were no additional details.

US officials last week said Iran carried out a similar exercise, though Tehran did not immediately acknowledge it.