US President Donald Trump has warned Iran over possible retaliation following deadly protests at the US embassy in Iraq. On Tuesday, several people among them an American contractor were killed in Baghdad with the US blaming Iran for the chaos.

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In a tweet, Trump insisted that Iran planned and executed the protests, adding that the US will not tolerate the incidents.

"The U.S. Embassy in Iraq is, & has been for hours, SAFE! Many of our great Warfighters, together with the most lethal military equipment in the world, was immediately rushed to the site. Thank you to the President & Prime Minister of Iraq for their rapid response upon request...." he tweeted.

"....Iran will be held fully responsible for lives lost, or damage incurred, at any of our facilities. They will pay a very BIG PRICE! This is not a Warning, it is a Threat. Happy New Year!" he added.

However, Tehran has dismissed the allegations, distancing itself from the protests, adding that Iraqi people expressed their dissatisfaction against the US.

"American officials have the astounding audacity of attributing to Iran the protests of the Iraqi people against (Washington's) savage killing of at least 25 Iraqis ...," Iranian Foreign Ministry spokesman Abbas Mousavi said in a statement carried on a ministry website.