Middle East

US official warns Iran over weakness claim

President Donald Trump is placing new sanctions on Iran as military action remains a possibility. (AAP)

After Donald Trump called off strikes against Iranian targets US National Security Adviser John Bolton warned Iran should not mistake US prudence for weakness.

United States National Security Adviser John Bolton has warned Iran that it should not "mistake US prudence and discretion for weakness," after President Donald Trump called off strikes against Iranian targets on Friday.

"No one has granted them a hunting license in the Middle East," Bolton said in a joint press conference with Israeli Prime Minister Benjamin Netanyahu in Jerusalem.

Trump said he decided against the strikes because he was told 150 people would die in the attacks and this would not be a "proportionate" response to Iran's downing of an unmanned US spy drone earlier this week.

Tehran says the drone violated its airspace, while the US insists the aircraft was shot down over international waters in the cramped Strait of Hormuz, a key energy shipping route.

Reiterating comments made by Trump, Bolton said: "our military is rebuilt, new and ready to go - by far the best in the world."

"Sanctions are biting, and more added last night. Iran can never have nuclear weapons, not against the USA and not against the world," he added.

Netanyahu said that following the removal of sanctions on Iran, and well before the events of recent weeks, Israel had seen "an explosion of terror and aggression."

"Iranian forces fired dozens of rockets into Israeli territory and flew drones into Israeli airspace," he said.

The US is expected to enact new sanctions against Iran on Monday.

On Monday and Tuesday, Bolton is set to participate in a summit in Jerusalem with national security advisers from Israel and Russia.

Iran is expected to be a focus of the discussions.

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