Addressing an annual global conference on Islamic unity in Tehran, Rouhani said Saturday Muslims have no way but to remain united in order to achieve victory over the U.S. and fight its blatant oppression.
Iranian officials frequently condemn Israel and predict its demise.
"Rouhani's hate speech calling for the destruction of Israel proves once again why the nations of the world should join the sanctions against the Iranian terror regime, which also threatens them".
Iranian President Hassan Rouhani has called on Muslims across the world to unite against the United States, instead of "rolling out red carpets for criminals".
Terrorist groups such as Lebanese Hezbollah and Palestinian Hamas, which want to see Israel destroyed, are typically supported by Iran.
"They deployed a power in the region that completely obeys the west in regional matters", he said, adding that "they formed the fake Israeli regime and killed and displaced the historical nation of Palestine". Israel views Iran's clerical establishment as an existential threat.
Rouhani said Iran considers Saudi Arabia as its brother and is prepared to work with the Arab kingdom to resolve issues.
Rouhani also on Saturday accused the US of forming close ties with "regional Muslim nations" to protect Israel.
Riyadh cut diplomatic ties with Tehran in January 2016 after protesters stormed its diplomatic missions in Iran following its execution of a prominent Shia cleric.
Iran and Saudi Arabia are regional rivals and have supported opposing sides in conflicts in Syria and Yemen, as well as different political factions in Iraq and Lebanon.
Trump has also repeatedly put Riyadh under pressure to purchase more arms from the USA in compensation for what he described as America's efforts to protect the kingdom.