The threat came as Iran marked the 40th anniversary of its revolution with rallies and marching that featured chants and banners calling for "Death to America", and "Death to Israel". It later broadcast footage showing crowds across this country of 80 million.
The routes leading up to the square were packed with people as loudspeakers blared revolutionary anthems and slogans.
"I do not ignore the threats of the Iranian regime but neither am I intimidated by them", Netanyahu said in a statement and video issued by his office as Iran celebrated the 40th anniversary of its revolution.
Tensions between the two Middle Eastern powers have been smouldering in recent years over Israeli lobbying to get the USA to withdraw from the Iran nuclear deal, and continued Israeli airstrikes in Syria, which Israel claims target Iranian forces and military installations.
In his address on Tehran's Azadi Square, Rohani said the "enemy will never reach its evil objectives", vowing that Iran will defeat USA sanctions.
In January, President Hassan Rouhani said his country was experiencing its worst economic crisis since the overthrow of the Shah.
Iranian political and military officials have also attended the rallies along with other people to rejoice at the auspicious ceremony. "They will not achieve their ill-omened aims". Tehran denies the charge, insisting its satellite launches and rocket tests do not have a military component.
"We do not and we will not ask permission for producing any type of missiles from anybody", Rouhani said in his speech Monday, though he stressed that Iran would "continue constructive engagement" with the worldwide community.
17 people including children killed in Delhi's Karol Bagh hotel fire
Prime Minister Narendra Modi also expressed grief on the incident and offered condolences to the family of those killed. All norms were followed here; license is issued only after inspection. "Mishaps can occur in a house as well", he said.
In a speech at Tehran's Azadi square, President Hassan Rouhani dismissed USA efforts to isolate Iran, saying US sanctions could not break the Islamic Republic.
Washington and its Arab allies have viewed Iran with great suspicion since the Islamic Revolution, fearing Khomeini's radical ideology would inspire militants across the Middle East. He said he wanted to teach his son to support the revolution.
Mahmoud Hemmati, 35, was pushing his 68-year-old mother, Parivash Fakheri, in a wheelchair.
Fakheri, who was one of the revolutionaries on the streets of Tehran in 1979, said she would defend the revolution all over again.
"I know there are many economic problems today, but that is something different from our revolution", she said.
Last week, Iranian Supreme Leader Ayatollah Khamenei claimed that Iran's infamous "Death to America" chanting is intended not at the United States as a whole, but merely at President Trump. "It has been moving forward over the past 40 years and making Iran stronger". "The regime in Iran has produced only #40YearsofFailure", he wrote.
A majority of Iranians blame domestic mismanagement and corruption over foreign sanctions for the economic situation, according to an IranPoll survey published in December 2018.