Renewed U.S. sanctions target Iran's economy, Tehran cool on talks

The new package will take effect on Tuesday.

The second phase of USA sanctions, which takes effect November 5 and will block Iran's oil sales, is due to cause more damage, though several countries including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.

In the meantime, he said, "we're going to enforce the sanctions".

"The United States is fully committed to enforcing all of our sanctions, and we will work closely with nations conducting business with Iran to ensure complete compliance", he said in a statement.

He said: "There are reports of Iran possibly taking drastic measures but we are hearing that at this point Iran doesn't want to escalate tensions with the US".

Earlier on Monday, Trump signed an executive order paving the way for the return of biting sanctions against Tehran on Tuesday.

As of 0401 GMT Tuesday, the Iran government can no longer buy USA banknotes and broad sanctions will be slapped on Iranian industries, including its rug exports.

The EU announced that its "blocking statute" - aimed at "sustaining trade and economic relations between the EU and Iran" in the face of renewed USA sanctions - will enter into force on the same day as the restored sanctions.

The first round of renewed United States sanctions will take effect on Tuesday with the harshest penalties expected in early November. "These include sanctions targeting Iran's energy sector, including petroleum-related transactions, as well as transactions by foreign financial institutions with the Central Bank of Iran", said the USA president.

That accord - negotiated also with the U.K., France, German, Russia and China - suspended US sanctions in return for limits and regular inspections on Iran's nuclear programs, while allowing the country to continue enriching uranium for peaceful energy purposes. But French oil group Total and carmaker PSA have already indicated they are likely to pull out of Iran.

That agreement established curbs on Iran's nuclear program in exchange for sanctions relief.

Michael Eisenstadt, an expert on Middle Easter security and defense told reporters on the Washington Institute's call that while Iran had talked a big game, it carefully measured its actions to avoid a strong United States response.

"All remaining USA nuclear-related sanctions will resume effective November 5, 2018".

Zarif continued, "Trump Administration wants the world to believe it's concerned about the Iranian people". The other signatories to the deal, including the EU, Russia and China, are sticking with the accord.

They have pledged to abide by their commitments under the deal. President Donald Trump unilaterally withdrew the U.S. from the agreement on May 8.

The American sanctions, to be reimposed tomorrow by the administration of President Trump, will add to the daily discomfort. "We will use them aggressively".

The statement said: "The lifting of nuclear-related sanctions is an essential part of the deal; it aims at having a positive impact not only on trade and economic relations with Iran, but most importantly on the lives of the Iranian people". Some of its major European allies have been working to prevent the 2015 deal from falling apart.

A joint statement issued on Monday by the foreign ministers of the EU's 28 member states, including the UK's foreign secretary, Jeremy Hunt, said there was a "determination to protect" the bloc's economic interests and the nuclear deal known as the joint comprehensive plan of action (JCPOA), which Brussels, along with China and Russian Federation, continues to support.

Speaking to reporters en route from a three-nation trip to Southeast Asia, Pompeo said Monday's re-imposition of some sanctions is an important pillar in US policy toward Iran.

  • Anthony Vega