Iranians burn flags of the United States during commemorations of the 40th anniversary of Islamic Revolution in the capital Tehran on February 11, 2019.
Tehran's downtown Enghelab, or Revolution Street, is decorated with huge balloons.
Some of the protesters burned USA flags.
In a speech at Tehran's Azadi (Freedom) square, Rouhani said US efforts to isolate Iran would fail.
U.S. President Donald Trump pulled out of Iran's 2015 nuclear deal with world powers past year and reimposed sanctions on Tehran, dealing a blow to the country's economy.
The Ayatollah urged crowds to turn out in vast numbers for the 40th anniversary of the revolution in a show of Iranian unity to the world.
Netanyahu has said in recent weeks that Israel has carried out hundreds of attacks in Syria over the past several years and would ramp up its fight following the planned withdrawal of USA troops from the country.
Rouhani lambasted calls from the United States and Europe for a fresh agreement to curb Iran's missile program.
Washington alleges Iran's launches defy a U.N. Security Council resolution calling on Iran to undertake no activity related to ballistic missiles capable of delivering nuclear weapons. "The regime in Iran has produced only #40YearsofFailure", he wrote.More news: Jennifer Aniston's transformation: Still fabulous at 50
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Later that year, Iranian militants took dozens of people hostage at the US Embassy in Tehran, sparking the first round of sanctions from Washington and causing a lasting rupture in countries' relations.
After Israel bombed Iranian facilities near Damascus International Airport in broad daylight, Iranian forces fired a ground-to-ground missile towards the Israeli annexed Golan Heights.
In Tehran, 27-year-old medical student Hossein Hosseinpour, walked with his wife and their 18-month son Amir Ali.
Fakheri, who was one of the revolutionaries on the streets of Tehran in 1979, said she would defend the revolution all over again. "It has been moving forward over the past 40 years and making Iran stronger". "I don't think you'll have many more anniversaries to enjoy", Bolton concluded.
Ayatollah Ali Khamenei, the supreme leader, recently told military officials Europe "cannot be trusted, just like the Americans".
"Perhaps worst of all, the people of Iran have suffered grievously".
In a tweet written on the anniversary that he also sent out in Farsi, Trump said the revolution had been a complete failure.
Last year, Iran cracked down on protests over poor living standards.