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Aden - Yasmine El Tohamy - "The shameful peace plan imposed by America on the Palestinians is the treason of the century and doomed to fail," the foreign ministry said in a statement on Tuesday.
Trump on Tuesday unveiled long-awaited details of his so-called "Deal of the Century" at a White House press conference alongside Israeli Prime Minister Benjamin Netanyahu.
While the peace plan has garnered support from some Western and Gulf allies - including Saudi Arabia, the UAE and the UK - it has been rejected by Palestinians, for whom the proposed annexation of West Bank settlements and the Jordan Valley is unacceptable.
Iranian Foreign Minister Mohammad Javad Zarif said on Twitter that the "so-called 'Vision for Peace' is simply the dream project of a bankruptcy-ridden real estate developer", in reference to Trump.
"But it is a nightmare for the region and the world and, hopefully, a wake-up call for all the Muslims who have been barking up the wrong tree," wrote Zarif.
What is the 'Deal of the Century'?
Unveiled after a three-year wait on Tuesday, Trump's so-called "Deal of the Century" claims to be an "historic opportunity" for a two-state solution to the Israeli occupation of Palestinian lands.
The US president said his peace plan would more than double territory earmarked for a Palestinian state and grant the future state a capital in East Jerusalem.
Meanwhile, Israel would be granted an "undivided" capital in Jerusalem under the deal. Tel Aviv would also be given the green light to annex the Jordan Valley - a vital zone which makes up some 30 percent of the West Bank - and Israeli settlements, which are widely considered illegal under international law.
Israel would be allowed its capital in Jerusalem with all territory west of the seperation wall, including the historic old city and major Palestinian-majority neighbourhoods, whereas Palestine would be granted only areas of Jerusalem to the east of the wall.
In return for lost territory in the occupied West Bank, the future Palestinian state would be granted territories in the sparsely populated Negev desert close to the Egyptian border. Other concessions include $50 billion worth of investment in the future state and access to two ports.
Both officials from the Palestinian Authority and protesters across the West Bank and besieged Gaza Strip have already rejected the deal, which critics say is overwhelmingly pro-Israel and will prevent the formation of a viable Palestinian state.
Maps unveiled by the White House on Tuesday reveal how the future states of Israel and Palestine would look if the deal is realised.
Agencies contributed to this report
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