Iran's Foreign Minister Javad Zarif has said US President Donald Trump's decision to ban arrivals from seven Muslim-majority countries was "a great gift to extremists", as Tehran takes retaliatory action on US passport holders.

"Collective discrimination aids terrorist recruitment by deepening faultlines exploited by extremist demagogues to swell their ranks, Zarif posted on Twitter early on Sunday. 

Zarif's statement followed an announcement that Iran is taking "reciprocal measures", deferring the issuance of visas to US passport holders.

He said the Trump's decision "shows baselessness of the US claims of friendship with the Iranian people".

Read more at Al Jazeera.