(Persia Digest) - The Iranian president has claimed America offered to lift all sanctions on the country in exchange for talks - something Donald Trump has denied.
Sanya Burgess writes in Sky News that Hassan Rouhani said he met with US officials at the United Nations general assembly following intervention from Germany, the UK and France.
Mr Trump was not present.
Speaking on his return from New York, the Iranian leader said the officials "had said clearly that we will lift all sanctions" but due to the "toxic atmosphere" he turned down the offer.
He said: "This action wasn't in a manner that was acceptable, meaning that in the atmosphere of sanctions and the existence of sanctions and the toxic atmosphere of maximum pressure, even if we want to negotiate… no one can predict what the end and result of this negotiation will be."
Mr Trump responded to his Iranian counterpart's comments by tweeting a swift denial.
He wrote: "Iran wanted me to lift the sanctions imposed on them in order to meet. I said, of course, NO!"
In Mr Rouhani's UN speech, he accused the US of "merciless economic terrorism" and of engaging in "international piracy".
He made it clear he would not negotiate on Iran's nuclear programme until there are changes to the sanctions currently hitting his country hard.
Mr Rouhani told the delegates in New York: "Our response to any negotiation under sanctions is negative."
He also said that Iran has "resisted the most merciless economic terrorism" from a nation that is engaging in "international piracy".
The latest row between the countries comes after Mr Trump said the US imposed new sanctions on Iran's central bank following Tehran's alleged involvement in drone and cruise missile attacks on Saudi oil facilities.
Mr Trump re-imposed sanctions last year after pulling out of the landmark Iranian nuclear deal, which key European countries, including the UK, remain committed to.
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