Iran will respond firmly to any Israeli naval action against its oil shipments, Iran's defence minister said on Wednesday, in comments that came a week after Israel's prime minister said its navy could act against Iranian oil "smuggling" to enforce US sanctions.

Iran's President Hassan Rouhani arrived in Iraq on Monday for his first official visit, state television said, as Baghdad is under pressure from Washington to limit ties with its neighbour.

Iran hopes a new trade channel with Europe aimed at cushioning the blow of reimposed US sanctions will be working within weeks, its deputy foreign minister said on Wednesday.

Iranian President Hassan Rouhani rejected on Wednesday the resignation of Foreign Minister Mohammad Javad Zarif, standing by a moderate ally long targeted by hardliners in internal factional struggles over a 2015 nuclear deal with the West.

Indian traders will export raw sugar to Iran for March and April delivery, five trade sources said, the first Indian sugar sales to Tehran in at least five years as Iran struggles to secure food supplies under sanctions imposed by the United States.

Iranian Foreign Minister Mohammad Javad Zarif, who was the lead negotiator in the 2015 nuclear deal has abruptly tendered his resignation on Instagram, although there was no sign President Hassan Rouhani had yet accepted his decision.

Iranian Foreign Minister Mohamed Javad Zarif stepped down on Monday, announcing his resignation on Instagram.

Iran successfully tested a cruise missile on Sunday during naval exercises near the Strait of Hormuz, Iran's state media reported, at a time of heightened tensions with the United States.

Iran said on Saturday it had many options to neutralise the reimposition of US sanctions on its oil exports, the semi-official Tasnim news agency reported, adding that Tehran's clerical rulers had no plans to hold talks with Washington.

Iran has remained within the key limits on its nuclear activities imposed by its 2015 deal with major powers despite growing pressure from newly reimposed US sanctions, a report by the UN nuclear watchdog indicated on Friday.

Iran's elite Revolutionary Guards said Monday it has arrested three ‘terrorists’ involved in last week's deadly suicide bomb attack on security forces in southeastern Iran.

Iranian President Hassan Rouhani on Sunday inaugurated a new domestically-built submarine armed with cruise missiles at a time of rising tensions with its arch-enemy the United States.