US President Donald Trump urged Iran to come to the table and make a deal on nuclear weapons or the next US attack would be far worse.
Tehran responded with a threat to strike back against the US, Israel, and those who support them.
In June last year, Iran was preparing for nuclear talks with the United States.
The US and Israel then stunned Tehran by carrying out bombing raids, including American B-2 bomber hits on Iran's nuclear facilities.
US President Donald Trump is now calling on Iran to discuss its nuclear programme or face potential attacks from an armada of military vessels heading towards the Persian Gulf.
The US threats are also based on what Washington says is the execution of thousands of people who recently took to the streets of Iran protesting about the economy.
With little trust on either side, Iran says, this time, it is ready to respond, not with words but firepower, targeting Israel and US facilities in the Arab world.
US Secretary of State Marco Rubio, in testimony to Congress, said an American presence in the region is crucial to counter the Iran threat.
Said Rubio: "We have to have enough force and power in the region just on a baseline to defend against that possibility that at some point, as a result of something, the Iranian regime decides to strike at our troop presence in the region."
Iran's Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi said Tehran is determined to create deterrence against a US military buildup and threats.
He said if Iran is attacked, they will deliver an appropriate response, not a proportionate one.
Gharibabadi added that if they are forced to target US military bases in the region, they would focus solely on the facility and not the country.
Meanwhile, in Iraq, hundreds protested in Baghdad against US intervention in the country's internal affairs.
They burned a picture showing a US flag and Trump and chanted anti-American and anti-Israeli slogans.
Trump recently hit out against the possible return of former Iraqi Prime Minister Nouri al-Maliki, who is nominated by the country's dominant political bloc to return to the premiership.
Trump threatened to withdraw Washington's support for Iraq if he returns to power.