One banner read: "Much to the dismay of America, the revolution has reached its 40th year".
Referring to Iran as "the Mother Land", Rouhani said that during the rule of "the traitor Qajar dynasty 205 years ago", large portions of lands were separated from Northern Iran and the caucuses.
Iranian President Hassan Rouhani said on Monday that Iran was determined to expand its military power and ballistic missile programme despite mounting pressure from hostile countries to curb Iran's defensive work, state TV reported.
In a speech at Tehran's Azadi (Freedom) square, Rouhani said USA efforts to separate Iran from other countries would fail.
Trump also reestablished USA economic sanctions against Iran.
Hundreds of thousands of Iranians demonstrated Monday to mark the 40th anniversary of the country's Islamic Revolution.
Iran's president on Monday insisted "enemy" plots against the country would fail as vast crowds marked 40 years since the Islamic revolution at a time of heightened tensions with the United States.
Waving Iranian flags, chanting "Death to America" and burning US and Israeli flags, hundreds of thousands of people poured out onto the streets across Iran on Monday, marking the date that's considered victory day in the country's 1979 Islamic Revolution.
Celebrations culminated in Iran on Monday for the February 1-11 period in 1979 when the late Ayatollah Ruhollah Khomeini returned from exile and ousted the pro-Western shah.
Rouhani also promised the crowds that Iran would overcome the economic hardship amid the country's spiraling economy and the newly imposed US sanctions.
Although the Iranian government has attempted to establish financial mechanisms that would facilitate its trade relations with European powers, its ability to trade internationally has been badly affected by renewed USA sanctions.
"Iran continues to seek nuclear weapons to intimidate people all around the globe and ballistic missiles to use as delivery systems".
Netanyahu hit back hours later, saying that if Iran made the "terrible mistake" of attacking Israel, it "will be the last anniversary of their revolution they will ever celebrate".
"Were this regime to make the bad mistake of trying to destroy Tel Aviv and Haifa, it would not succeed, but it would mean that they had celebrated their last Revolution Day".
Today, Iran enjoys growing influence through proxies in Iraq, Syria, Lebanon and Yemen, raising concerns in Sunni Saudi Arabia, which accuses its rival of trying to dominate the Middle East. Tehran denies that. -Gen. Hossein Salami, deputy head of Iran's Revolutionary Guards.