US President Donald Trump has once again escalated his rhetoric against Iran, saying that the United States could eliminate the country's remaining leadership as senior Iranian officials gathered for the funeral of former Supreme Leader Ayatollah Ali Khamenei.

While insisting Washington wants diplomacy to continue, Trump suggested the US had the capability to strike Iran's top leadership gathered at the funeral but chose not to.

"They are all there. One shot and we can take them all out, but we are not going to do that because then we would have nobody to negotiate with," Trump said while speaking to Axios.

Trump has not eased his criticism of Iran since the recent US-Israeli strikes that killed Ayatollah Ali Khamenei. A day earlier, he claimed Iran was desperate to reach an agreement with Washington.

Trump's comments have drawn an angry response from Tehran. Reacting to his remarks about the funeral, Iran's embassy in Armenia accused the US President of lacking "civilisation, history and honour." Iranian leaders have also warned that any fresh military action by the United States or Israel would invite a swift response.

Ahead of the funeral, senior Iranian military officials cautioned Washington and Tel Aviv against what they described as any "miscalculation" that could trigger further conflict.

The latest exchange comes even as US and Iranian officials continue indirect talks in Doha on issues including maritime security and financial matters.

Another round of negotiations is expected after the funeral ceremonies conclude.

-India TV News