Iran's Supreme Leader Ayatollah Ali Khamenei has said that Iran will never surrender as demanded by US President Donald Trump.

Iran's Supreme Leader Khamenei's response came a few hours after Trump claimed that the United States knew where Khamenei was hiding and could kill him if he wanted to.

After Israel launched a major bombing campaign on Friday, Iran launched a counter-attack with missiles and drones.

'This nation will never surrender,' Khamenei called Trump's ultimatum an 'unacceptable' condition in a written address on state television. 

'The US must understand that any military intervention will cause irreparable damage,' he said.

Khamenei, who has been in power since 1989 and is the ultimate arbiter of all state affairs in Iran, had previously pledged that Iran would show no mercy to Israeli leaders. 

After the United Nations nuclear watchdog IAEA confirmed that the Israeli attack destroyed two buildings near Tehran that make "centrifuge components" for Iran's nuclear program, Khamenei said that Iran will not bow down to America.