Addressing a gathering of Iranian diplomats, Rouhani said, "The Americans must fully understand that peace with Iran is the mother of all the peace, and war with Iran would be the mother of all wars".
President Donald Trump has said he is open to a new deal that would cover not only Iran's nuclear facilities, but also its missile programme and regional interventions which are seen as a threat to Washington's Israeli ally.
"Although the current American government does not seem to speak of a military threat, according to precise information it has been trying to persuade the USA military to launch a military invasion (of Iran)", Baqeri said.
Rouhani suggested that Iran has alternatives to shipping crude through Hormuz. In May, Trump officially violated the seven-nation Iran nuclear accord, but Iran has worked in concert with European nations to keep the deal alive and has repeatedly stated that it is not developing nukes and has no desire to do so.
"We've become more united than before".
Shortly after Trump's announcement to withdraw, Rouhani threatened to ramp up Iran's enrichment of fissile material.
Major General Baqeri highlighted Iran's military might and said the Armed Forces should defend the people and the Establishment with full power.
I would advise Iran not to start their nuclear program.
Rouhani said such threats against Iran would have adverse effects.
Rouhani also said pursuing hostile policies against Iran would "only lead to regret".
The White House has also been reaching out to diaspora Iranians, many of whom fled the country following the Iranian Revolution of 1979.
In past months, the Iranian establishment has faced a range of challenges, including the USA withdrawal from the nuclear accord under which Tehran has limited its sensitive nuclear work in exchange for relief from economic sanctions; protests over the worsening economy, water scarcity, and pollution; and unprecedented public protests by women against forced veiling.
The report also said officials in Washington have launched a campaign meant to pressure Iran to end its nuclear program and its support of militant groups in the Middle East by creating unrest among its citizens.