President Hassan Rouhani said on Tuesday that Iran favors talks with the US if it lifts sanctions against the Islamic republic, despite his top diplomat turning down a meeting with US President Donald Trump.

Rouhani said that "peace with Iran is the mother of all peace" and "war with Iran is the mother of all wars" as he defended a landmark 2015 nuclear deal, which is formally known as the Joint Comprehensive Plan of Action (JCPOA).

"The Islamic Republic of Iran favors talks and negotiations and, if the US really wants to talk, before anything else it should lift all sanctions," Rouhani said in remarks aired live on state television.

Rouhani, speaking at the foreign ministry after meeting with his top diplomat, Mohammad Javad Zarif, said Iran was ready for talks regardless of whether or not the US was party to the landmark nuclear deal.

"Whether they want to come into the JCPOA or not, it's up to them," said Rouhani, .

"All sanctions should be lifted so that there will be no criminals facing us," he said, accusing the US of committing acts of "economic terrorism" for blocking imports of food and medicine.

"So if it wants talks, it must prepare the path for it. The path to it is repent. There is no other way."

Tensions between Iran and the US have been rising since Trump unilaterally withdrew the US from the nuclear deal in May 2018 and began imposing sanctions on it as part of a campaign of "maximum pressure."

Twelve months on, Iran hit back by suspending some of its commitments under the deal.

The situation threatened to spiral out of control with ships attacked, drones downed and oil tankers seized.

At the height of the crisis, US President Donald Trump called off airstrikes against Iran at the last minute in June after the Islamic republic's forces shot down a US drone

Rouhani said in any talks the Americans should be ready to negotiate fairly.

"If you want security, if your soldiers want security in the region, [then agree to] security for security," he said. "You cannot harm our security and then expect your own security.

"Peace for peace and oil for oil," he added. "You cannot say that you won't allow our oil to be exported.

"Strait for strait. It cannot be that the Strait of Hormuz to be free for you and the Strait of Gibraltar not to be free for us."