An Iranian general declared today that Tehran was not afraid of war after Donald Trump threatened the country after the siege at the US embassy in Iraq.

President Trump said that he was holding Iran 'fully responsible' for Tuesday's carnage which saw the consulate in Baghdad besieged and set ablaze by a pro-Iran mob.

'We are not leading the country to war, but we are not afraid of any war and we tell America to speak correctly with the Iranian nation.' Islamic Revolutionary Guards Commander, Brigadier General Hossein Salami warned. 'We have the power to break them several times over and are not worried.'

Trump had said in a tweet on Tuesday that Iran would be 'held fully responsible for lives lost, or damage incurred, at any of our facilities. They will pay a very BIG PRICE! This is not a Warning, it is a Threat.'

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In response to Donald Trump saying that he would hold Iran 'fully responsible', Brigadier General Hossein Salami said 'we are not afraid of any war and we tell America to speak correctly to the Iranian nation'

Pro-Iranian militiamen and their supporters set a fire while U.S. soldiers fired tear gas during a sit-in in front of the U.S. embassy in Baghdad, Iraq, Wednesday

The first contingent of a paratroop infantry battalion from the U.S. Army's 82nd Airborne Division bound for Kuwait receive a briefing as they prepare to leave Fort Bragg, North Carolina on Wednesday

The first wave of 750 U.S. Army paratroopers from a rapid reaction force were dispatched from Fort Bragg, North Carolina, to Kuwait yesterday.

Iran-backed militiamen have withdrawn from the US embassy compound in the Iraqi capital but tensions remain high after two days of clashes.

On Tuesday, some 6,000 pro-Iran Shiite militia fighters stormed U.S. embassy in Baghdad, set walls ablaze and chanted 'Death to America!' in a violent retaliation for American air strikes.

There were no reports of American casualties, and the attack was repelled after 100 Marines rapidly reinforced the compound.

US Secretary of Defense Pompeo said in a statement that the attack was 'orchestrated by terrorists' and 'abetted by Iranian proxies', tweeting pictures that he said showed US-designated terrorists with Iranian ties outside the embassy.

Supreme Leader Ayatollah Ali Khamenei on Wednesday condemned U.S. attacks on Iranian-allied militias in Iraq, blaming the United States for violence in Iran's neighbour.

A protester places a shoe at a placard with U.S. President Donald Trump illustration outside the U.S. Embassy during a protest yesterday to condemn air strikes on pro-Iran militia

Iran's Army chief Major General Abdolrahim Mousavi said on Thursday his forces were ready to confront the 'enemy'.

'Our armed forces ... monitor all moves, and if anyone makes the slightest mistake, they will decisively react, and if the situation heats up, we will show our abilities to the enemy,' Mousavi was quoted as saying by state broadcaster IRIB.

Iran protested on Wednesday to a Swiss envoy, who represents U.S. interests in Tehran, over what it called 'warmongering statements' by American officials.