Relations between Tehran and Washington continue to deteriorate over Iran's nuclear programme [AFP]

The demonstrators, mainly schoolchildren, chanted "Death to America!" outisde the embassy on Monday, and set alight US and Israeli flags.

The rally appeared less crowded than in previous years.

"We will not get on with America even for a moment," read one placard carried by demonstrators standing in the rain outside the embassy, labelled the "Den of Spies" in central Tehran, the Iranian capital.

"Iranian people regard America as the Great Satan and the main instigator of wars and insecurity in the world," said a declaration read out at the rally.

Tehran and Washington have had no diplomatic relations for nearly three decades since students took American diplomats hostage  for 444 days following the 1979 Islamic revolution which toppled the US-backed shah.
 
The embassy compound, now run by Iran's  Revolutionary Guards, is used as an educational centre with occasional exhibitions about the "crimes" of the United States.

'Arrogant attitude'
 
"Besides, they [the United States] have not apologised yet and rather keep on with their arrogant attitude," Khamenei said.
 
Tensions have mounted over Iran's nuclear programme which many  Western countries believe is a cover for ambitions to build atomic  weapons - an allegation denied by Tehran.
 
How to deal with Iran has been one of the major foreign policy issues in the US presidential elections.

Washington has so far pushed for tougher sanctions and has never ruled out a military option to thwart Iran's nuclear drive.

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