DUBAI (Reuters) -

Iran will overcome U.S. sanctions by either bypassing them or through negotiations, and it will not cross its red lines in any talks with arch-adversary Washington, President Hassan Rouhani said on Wednesday.

Tensions have soared between Tehran and Washington since last year, when President Donald Trump pulled the United States out of Iran’s 2015 nuclear deal with six powers and reimposed sanctions on Tehran that have crippled its oil-based economy.

The Islamic Republic has rejected negotiating a new deal with the Trump administration, saying talks are only possible if Washington returns to the nuclear pact and lifts sanctions.

“The government is determined to defeat (the enemy) by bypassing America’s sanctions...or through various means including talks, but we will not cross our red lines,” the semi-official Iranian news agency ISNA quoted Rouhani as saying.

In a rare act of cooperation between Tehran and Washington, the United States and Iran each freed a prisoner on Saturday.

Washington said it was hopeful that the prisoner swap would lead to the release of other Americans held in Iran and that it was a sign Tehran was willing to discuss other issues.

Iran released Xiyue Wang, a U.S. citizen who had been held for three years on spying charges, while the United States freed Iranian Massoud Soleimani, who had faced charges of violating U.S. sanctions against Tehran.

Iran said on Monday there were about 20 Iranians jailed in the United States in cases linked to sanctions violations.