Washington: President Donald Trump said Saturday that the United States would impose "major" new sanctions on Iran in two days, just hours after saying he would be the Islamic republic's new "best friend" if they were to renounce nuclear arms.

Tensions between the United States and Iran have soared this week after Tehran downed a US surveillance drone.

Trump said Friday that he called off retaliatory military strikes at the last minute because the response was not "proportionate." But he had brandished the threat of sanctions ever since, and has now set a timetable.

"We are putting major additional Sanctions on Iran on Monday," Trump tweeted, while adding: "I look forward to the day that Sanctions come off Iran, and they become a productive and prosperous nation again - The sooner the better!"

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Dubai: Smoke was seen rising from an area near the United States Consulate in Dubai, according to witness accounts cited by Reuters.

There was no immediate official confirmation on the extent of damage or whether there were any casualties in the incident.

Earlier, the US embassy in Riyadh, Saudi Arabia’s capital, was also attacked. Authorities reported damage to the premises, but no casualties were recorded.

The developments come amid heightened tensions in the region, with Iran continuing to target US interests in the Middle East following deadly attacks launched on Saturday by Israel and the United States.