President Trump said Tuesday the U.S. is "not going to need an exit strategy" if war broke out with Iran.

"You're not going to need an exit strategy," Trump told reporters in the Oval Office, prompting laughter. "I don't need exit strategies."

"We would love to be able to negotiate a deal if they want to. If they don't want to, that's fine, too," Trump added. "But we would love to be able to, and frankly, they might as well do it soon."

Trump's comments are the latest in heightened tensions between the U.S. and Iran that were reignited last week when Iran downed a U.S. drone.

Trump later ordered and then called off a decision to strike Iran in retaliation.

On Monday, the president announced additional sanctions against the country's supreme leader and other top officials.

Iranian President Hassan Rouhani blasted the "outrageous and idiotic" sanctions on Tuesday, saying the White House is "afflicted by mental retardation and does not know what to do."

"Obviously, the people of Iran are great people," Trump said Tuesday. "I know many of them. I lived in New York - I haven't been there very much in the last two and a half years - but I know many Iranians living in New York, and they're fantastic people."

He added: "I have many friends that are Iranian, and it's very sad what's happening to that country."