Iranian President Hassan Rouhani has stressed that his country won't yield to pressure from the United States.
Rouhani said in an address to the nation on Tuesday that those who threaten Iran will regret it, and that Iranian people will not bend toward bullying powers.
The US has sent a nuclear-powered aircraft carrier to the Middle East to step up pressure on Iran.
A rocket was fired on Sunday into the Green Zone in Iraq's capital of Baghdad that houses the US Embassy.
The US State Department blames militias linked to Iran for the incident.
Iraqi Prime Minister Adel Abdul-Mahdi announced that his government will send delegations both to the US and Iran to help ease the tensions.
But it remains to be seen whether his mediation will break the impasse, as Iran rejects dialogue with the US.
NHK