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By Lucia Binding, news reporter

Donald Trump has said he is not seeking war with Tehran and indicated he was ready to defuse tensions by reaching a deal to bolster Iran's flagging economy.

While the US president said he will impose further sanctions on Monday aimed at stopping the country from obtaining nuclear weapons, he left the door open to negotiations aimed at reaching a settlement.

Image: The downing of a US surveillance drone has led to a rise in tensions. File pic

The overtures from the White House came as it was confirmed the US had launched a cyberattack against Iranian military computer systems, and as US secretary of state Mike Pompeo said he was travelling to Saudi Arabia and the UAE to "ensure we're strategically aligned" with allies.

Mr Trump earlier said he pulled out of airstrikes in retaliation for Iran's downing of an unmanned US drone because it would have killed 150 people.

The cyberattacks – planned by the US Cyber Command over weeks during escalating tensions between the two countries – disabled Iranian intelligence systems that controlled its rocket and missile launchers, officials said.

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Tensions between the two countries have risen since the US pulled out of a 2015 nuclear deal last year between Iran and world powers and reinstated sanctions.

Iran's military has released video which it claims shows a US surveillance drone being shot down by Iranian forces
Image: Iran's military has released video which it claims shows a US surveillance drone being shot down by Iranian forces

Mr Trump said military action was "always on the table" against Iran following recent events, but indicated he was open to deescalating the situation and reach a deal.

"We will call it 'let's make Iran great again'," Mr Trump said.

"I'm not looking for war," he added.

"I think they want to negotiate. And I think they want to make a deal.

"I don't think they like the position they're in. Their economy is, is absolutely broken."

Iran's military has released video which it claims shows a US surveillance drone being shot down by Iranian forces
A clip of the US drone being shot down, released by Iran's military

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