Iranian President Hassan Rouhani says the first step to talks with US President Donald Trump would be the removal of sanctions, decreasing the likelihood of a meeting.
Mr Trump appeared to confirm his willingness to talk with Iran at the G7 summit in Biarritz, south-west France, saying he would meet Mr Rouhani if the situation were right.
"If the circumstances were correct, I would certainly agree to that," he said on Monday, with clarifying what those circumstances would be.
But on Tuesday, Mr Rouhani told state TV that the first step was to drop the sanctions.
"You must retreat from all illegal, unjust and wrong sanctions against the nation of Iran," he said.
Iranian Foreign Minister Javad Zarif said the prospects for such a meeting were "unimaginable" without Washington rejoining the nuclear deal with Tehran.
Mr Zarif was speaking two days after he made a surprise trip to Biarritz for talks on the sidelines of the G7 summit.
Tension between Washington and Tehran has increased in recent months.
The Iranian economy has been struggling since the US reimposed sanctions after pulling out of a pivotal 2015 nuclear deal that put limits on Tehran's uranium enrichment programme.
Mr Zarif was invited to the G7 summit by host France, which has taken the lead in trying to ease tension between Tehran and the US.
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France's President Emmanuel Macron and US President Donald Trump pose during a joint press conference in Biarritz, south-west France on August 26, 2019. AFP -
An Iranian government plane is seen on the tarmac at Biarritz airport in Anglet during the G7 summit, August 25, 2019. Reuters -
French President Emmanuel Macron receives Iranian Foreign Minister Mohammad Javad Zarif during a meeting in the city hall of Biarritz, southwestern France, on the sidelines of the G7 summit. AFP / Javad Zarif's official twitter account -
In this photo released by the official website of the office of the Iranian Presidency, President Hassan Rouhani speaks in a conference in Tehran, Iran, Monday, Aug. 26, 2019. Rouhani defended his foreign minister's surprise visit to the G-7 summit, saying he ready to go anywhere to negotiate a way out of the crisis following the US pullout from the nuclear deal. Iranian Presidency Office via AP -
(Left to right) Italy's Prime Minister Giuseppe Conte, European Council President Donald Tusk, Japan's Prime Minister Shinzo Abe, US President Donald Trump, Britain's Prime Minister Boris Johnson, France's President Emmanuel Macron, Germany's Chancellor Angela Merkel and Canada's Prime Minister Justin Trudeau attend a working session on "International Economy and Trade, and International Security Agenda" in Biarritz, south-west France. AFP -
US President Donald Trump and Canada's Prime Minister Justin Trudeau shake hands during a bilateral meeting at the Bellevue centre in Biarritz, south-west France. AFP -
Britain's Prime Minister, Boris Johnson meets with President of the European Council, Donald Tusk at the G7 summit in Biarritz, France. Getty Images -
US President Donald Trump with wife and US First Lady Melania Trump as they disembark from an airplane upon landing at the Biarritz Pays Basque Airport in Biarritz on the opening day of the G7 summit in France. EPA -
Security members are seen on top of the Hotel du Palais summit venue ahead of the G7 summit in Biarritz, France. Reuters -
US President Donald Trump walks past French airforce soldiers after disembarking from an airplane upon landing at the Biarritz Pays Basque Airport in Biarritz, south-west France on the first day of the annual G7 Summit. AFP -
European Council President Donald Tusk speaks during a news conference on the margins of the G7 summit in Biarritz, France. Reuters -
Protestors hold portraits representing G7 leaders on the opening day of the G7 summit. EPA -
US President Donald Trump disembarks from Air Force One upon landing at the Biarritz Pays Basque Airport in Biarritz on the opening day of the G7 summit in Biarritz, France. EPA -
French President Emmanuel Macron,flanked by President of the Nouvelle-Aquitaine region Alain Rousset, samples local produce and wine, as he tours the exhibition hall above the international press center on the opening day of the G7 summit, in Anglet, France. Reuters -
A placard reading 'stop climate crime' is seen as demonstrators take part in a march in Hendaye, south-west France to protest against the annual G7 Summit. AFP -
Attac and Alternatives G7 spokesperson Aurelie Trouve speaks during a news conference in Anglet near Biarritz as part of the G7 summit, France. Reuters -
Brigitte Macron, wife of French President Emmanuel Macron, U.S. First Lady Melania Trump , Akie Abe, wife of Japan's Prime Minister Shinzo Abe, Chile's First Lady Cecilia Morel, Jenny Morrison, wife of Australia's Prime Minister Scott Morrison, and Malgorzata Tusk, wife of European Council President Donald Tusk visit a church in Espelette, near Biarritz, southwestern France. AP -
Italian Premier Giuseppe Conte, right, arrives at the G-7 summit in Biarritz, France. AP
It was initially reported that the unexpected arrival had angered Mr Trump and that he had not been told of the invitation.
But Mr Trump later said he knew about the invitation and "respected the fact that he was coming in. We're looking to make Iran rich again, let them be rich, let them do well, if they want".
Mr Rouhani also said that Iran would continue to scale back its nuclear commitments if the sanctions were not lifted.
"Tehran has never wanted nuclear weapons," he said. But he said that the country was always ready to hold talks.
The two countries have also been at loggerheads over the Grace 1 supertanker, which has now been renamed the Adrian Darya-1.
The Grace 1 was released from custody in Gibraltar this month, after being held for five weeks, as it was suspected of carrying oil to Syria in breach of EU sanctions.
The US Federal Court ordered the seizure of the vessel, claiming that it had links to the Iranian Islamic Revolutionary Guard Corps, which Washington has designated a terrorist organisation, soon after the detention order was lifted. The petition was rejected by Gibraltar.
Iran said any US move to seize the vessel again would have "heavy consequences".
It is not known where the tanker is going. It was initially sailing for Greece after its release and then Turkey.
It was revealed on Monday that the oil on board had been sold to an unidentified buyer.
Also on Monday, Iran said it sent destroyer Sahand to the Gulf of Aden, near Yemen, where the UAE and Saudi Arabia have been fighting the Iranian-backed Houthi rebels since 2015.
