Rouhani made the remarks while attending a meeting of Iran’s Supreme Council of the Cultural Revolution in Tehran on Tuesday, Press TV reported.
“Islam is the religion of mercy and peace," Rouhani said, adding that it should not be permitted that such terrorist attacks, "especially in Europe and the United States where many Muslims live," promote Islamophobia.
He noted that Iran condemns terrorist activities in all its forms, and called for global unity and determination to counter such terrorist acts, which claim the lives of innocent women, children, and civilians.
The Iranian president also stressed the importance of identifying the sources from which Daesh terrorists receive funding and resources to carry out their attacks.
Rouhani's remarks came in the wake of the deadly Paris attacks that left 132 people dead and 350 others injured, and the fatal bombings that killed over 40 civilians in the Lebanese capital Beirut last week.
Earlier in the day, Rouhani held a phone conversation with his French counterpart Francois Hollande, stressing unity in the face of terrorism.
According to a Twitter post, the two presidents underlined the need for unity to create a World Against Violence and Extremism, a set of proposals put forth by Rouhani at the United Nations in 2013.