Iran sanctions: Trump warns trading partners

Hassan Rouhani and Donald Trump

The snapback sanctions are meant to target Iran's purchases of United States dollars, metals trading and other dealings, coal, industrial-related software and its auto sector.

Mr. Erdan, who also heads the Strategic Affairs Ministry, praised the US for reimposing punitive sanctions on Iran that brought back into effect the harsh penalties lifted under the Iran nuclear deal.

Trump announced in May that he was pulling the United States out of the 2015 nuclear deal, a key foreign policy legacy of his predecessor Barack Obama, which saw some economic sanctions against Iran lifted in exchange for limits on the country's nuclear programme.

"I remain open to reaching a more comprehensive deal that addresses the full range of the regime's malign activities, including its ballistic missile program and its support for terrorism", Trump said.

Iran accused the U.S. of reneging on the nuclear agreement, signed by the Obama administration, and of causing recent Iranian economic unrest.

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Despite his claims, the accord "is working and delivering on its goal" of limiting Iran's nuclear programme, said a statement by European Union foreign policy chief Federica Mogherini and the foreign ministers of France, Germany and the UK.

Much of the damage has already been done, with Trump's aggressive rhetoric fueling a run on the rial in recent months, while worsening inflation has stoked public protests against the government's management of the economy that have intensified over the past week.

U.S. officials insisted the American government stands with the people of Iran and supports many of their complaints against their own government.

USA secretary of state Mike Pompeo said sanctions are an important pillar in American policy toward Iran and will remain in place until the Iranian government radically changes course.

Other countries have also asked European Union officials for details on the blocking regulations, as they explore ways to bypass sanctions.

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Rouhani said that Trump's call for direct negotiations with Iran were "only for domestic consumption in America. and to create chaos in Iran". Renault, Total, Peugeot, General Electric, Boeing, Hyundai, Mazda, IndusInd Bank and other major companies have either left Iran or asked their investors to do so before the return of U.S. sanctions.

"Talk to anyone, anywhere in the world and they will tell you that (Israeli Prime Minister Benjamin) Netanyahu, (US President Donald) Trump and (Saudi Crown Prince Mohammed) bin Salman are isolated, not Iran", he said.

The threat of sanctions has already weakened Iran's hand, one official said. "That's the ask", said Pompeo on Sunday ahead of the re-imposition. Israeli Prime Minister Benjamin Netanyahu hailed the renewed sanctions as "an important moment for Israel, for the U.S., for the region, for the whole world".

"We are always in favour of diplomacy and talks".

US trade with Iran stood at $258 million (Dh948m) in 2016, according to the US Census Bureau, while exports to Iran from the European Union, which will be affected by secondary sanctions, were worth $13 billion past year.

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