Pompeo also said "significant" sanctions on Iran would be announced on Monday aimed at further choking off resources that Tehran uses to fund its activities in the region.
Those tensions have been mounting since the Unities States past year withdrew from the 2015 nuclear deal between Tehran and world powers and reimposed economic sanctions on Iran.
Washington has since re-imposed biting sanctions against the Islamic Republic, despite Britain, China, France, Germany and Russian Federation remaining committed to the deal.
But he also described the US Middle East peace plan as "shameful" and "doomed to failure", and accused teh United Kingdom of siding with the Americans against Tehran.
"Everyone was saying I'm a war-monger, and now they say I'm a dove", Trump said Saturday as he was peppered with questions about the Iran drama.
US President Donald Trump claimed he called off a planned retaliatory military strike on Iran at the last minute, tweeting that Washington would instead place "major additional sanctions on Iran on Monday".
The prime minister went on to argue that Iran has increased its regional aggression ever since the 2015 nuclear deal, which brought the regime sanctions relief and substantial cash payments.
Europe has tried to respond to the United States withdrawal by setting up a special trade mechanism called INSTEX that would allow legitimate trade with Iran to continue without falling foul of U.S. sanctions.
Throughout the recent crisis, Trump has wavered between bellicose language and actions toward Iran and a more accommodating tone, including a plea for negotiations. It specifically hacked those belonging to Iran's Islamic Revolutionary Guard Corps (IRGC), which has been designated as a foreign terrorist group by the American administration, they said.
Trump has indicated that he would also be prepared to seek a deal to bolster Iran's flagging economy, an apparent move to defuse tensions.
Kharazi warned Sunday that European powers must realise Iran is "serious" about its decision and that "in two weeks it will take new steps" to scale down nuclear commitments.
"I am confident that at the very moment they are ready to truly engage with us, we'll be able to begin these conversations".
A top Iranian military official warned Washington against any strikes.
He was quoted by ISNA news agency as saying that Tehran welcomed "defusion of tensions" in the region.
Tehran says the drone violated its airspace, while Washington insists the unmanned aircraft was shot down over global waters in the Strait of Hormuz. Iran has said it is not interested in a dialogue with Trump. His administration is aiming to cripple Iran's economy and force policy changes by re-imposing sanctions, including on Iranian oil exports.
"Neither Iran nor any other hostile actor should mistake USA prudence and discretion for weakness".
No one has granted Iran a "hunting license in the Middle East", he said.