Iranians on Monday shrugged off the possibility that a bellicose exchange of words between President Donald Trump and his Iranian counterpart could escalate into military conflict, but expressed growing concern America's stepped-up sanctions could damage their fragile economy. In his latest salvo, Trump tweeted late on Sunday that hostile threats from Iran could bring dire consequences. This was after Iranian President Hassan Rouhani remarked earlier in the day that "American must understand well that peace with Iran is the mother of all peace and war with Iran is the mother of all wars." Trump tweeted: "NEVER EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKE OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE." Donald Trump tweet Within hours, Iran's state-owned news agency IRNA dismissed the tweet, describing it as a "passive reaction" to Rouhani's remarks. On Tehran streets, residents took the exchange in stride. "Both America and Iran have threatened one another in different ways for several years," shrugged Mohsen Taheri, a 58-year-old publisher.

President of Iran Hassan Rouhani addresses during the cabinet meeting in Tehran, Iran on December 31, 2017. Iranian Presidency |Anadolu Agency | Getty Images

A headline on a local newspaper quoted Rouhani as saying: "Mr. Trump, do not play with the lion's tail." Prominent Iranian political analyst Seed Leilaz downplayed the war of words, saying it was in his opinion "the storm before the calm." Leilaz told The Associated Press he was not "worried about the remarks and tweets," and that "neither Iran, nor any other country is interested in escalating tensions in the region." Citing harsh words the United States and North Korea had exchanged before the high-profile summit between Trump and North Korean leader Kim Jong Un, Leilaz said Trump and Kim got "closer" despite the warring words. Trump's eruption on Twitter came after a week of heavy controversy about Russian meddling in the U.S. 2016 election, following the Helsinki summit with Russian President Vladimir Putin. Meanwhile, the tweet was reverberating across the Mideast. Israeli Prime Minister Benjamin Netanyahu praised the U.S. president's "strong stance" after years in which the Iranian "regime was pampered by world powers." Trump earlier this year pulled the U.S. out of the international deal meant to prevent Tehran from developing a nuclear weapon and ordered increased American sanctions, as well as threatening penalties for companies from other countries that continue to do business with Iran. With the economic pressure, Trump said earlier this month that "at a certain point they're going to call me and say 'let's make a deal,' and we'll make a deal." Iran has rejected talks with the U.S., and Rouhani has accused the U.S. of stoking an "economic war." Rouhani also suggested Iran could immediately ramp up its production of uranium in response to U.S. pressure. Potentially that would escalate the very situation the nuclear deal sought to avoid — an Iran with a stockpile of enriched uranium that could lead to making atomic bombs. Trump's tweet suggested he has little patience with the trading of hostile messages with Iran, using exceptionally strong language and writing the all-capitalized tweet. "WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!," he wrote.