IRAN's fanatical regime has unveiled its next generation ballistic missile - as the Ayatollah ruled out peace talks with Donald Trump.

Army chiefs said the Fateh Mobin rocket - whose name means Bright Conqueror - is designed to evade radar before striking a target hundreds of miles away.

Defence minister Brigadier General Amir Hatami hailed it as "100-percent domestically made - agile, stealth, tactical, precision-guided".

He claimed: "Nothing can stop this missile because of its high degree of flexibility."

And in a clear warning to the West, he added: "As promised to our dear people, we will not spare any effort to increase the missile capabilities of the country and we will certainly increase our missile power every day.

"Be sure that the greater the pressures and psychological warfare against the great nation of Iran, our will to enhance our defence power in all fields will increase."

He did not state the rocket's range, but earlier versions such as the Fateh-313 are believed to have a range of up to 300 miles.

Iran is also believed to have long-range missiles with a range of 1,250 miles which are capable of reaching Israel and US bases in the region.

The unveiling came as Iran's religious supreme leader Ayatollah Ali Khamenei said there would be no Kim Jong-un style negotiations with Mr Trump.

He said on his English language Twitter account: "Recently, US officials have been talking blatantly about us. Beside sanctions, they are talking about war and negotiations.

"In this regard, let me say a few words to the people: THERE WILL BE NO WAR, NOR WILL WE NEGOTIATE WITH THE US."

He added: "We will never initiate a war; US won't launch a war either because they know that it would 100% end to their detriment.

"This is because Islamic Republic and Iranian nation have proved that any transgressor will be stricken a bigger blow."

Pentagon officials told Fox News that a Fateh rocket was test-fired by Iran during naval exercises in the Strait of Hormuz last week.

A general said the exercises were designed to send a message following threats from Iran that it choke 20 per cent of the word's oil supplies by blocking the key shipping route.

The pariah state has ramped up the rhetoric after Donald Trump pulled the US out of a 2015 nuclear deal in May.

The US president boasted of imposing the "most biting sanctions ever" after banning imports of pistachios and Persian rugs.

The sanctions have exacerbated a financial crisis in Iran that has sent the value of its currency tumbling, leading to widespread protests and warnings of revolution.