Iranian President Hassan Rouhani responds to Donald Trump's sanctions

Iranian President Hassan Rouhani responds to Donald Trump's sanctions

The European Union said Monday it deeply regretted the U.S.' reimposition of sanctions on Iran after President Donald Trump pulled out of the 2015 nuclear pact, and vowed immediate steps to protect European companies. Those who decide to pull out because of U.S. sanctions will need to be granted authorisation from the European commission, without which they face the risk of being sued by EU member states. European countries, along with Russian Federation and China, remain committed to the nuclear deal, but European companies are unlikely to risk USA sanctions to do business with Iran.

"We are always in favour of diplomacy and talks ... but talks need honesty".

"If you stab someone with a knife and then you say you want talks, then the first thing you have to do is remove the knife", Mr Rouhani said.

Washington must prove, he said, "whether it wants to resolve the problem through negotiations". The signs so far are that many Iranians will blame the new measures on the shortcomings of the government of President Rouhani rather than...

"How do they show they are trustworthy?"

It added: 'Preserving the nuclear deal with Iran is a matter of respecting worldwide agreements and a matter of global security'.

Rouhani fell back on the rhetoric of many of his predecessors by referencing the 1953 CIA-backed coup that overthrew Iran's elected prime minister and cemented the shah's rule.

Pompeo called the Iranian leadership "bad actors" and said Trump is intent on getting them to "behave like a normal country".

Iran did not appear interested in drawing attention to the drills.

Trump announced his intention to hit firms doing business with Iran when he reneged on a deal struck in 2015 created to help curtail Tehran's nuclear ambitions in return for limited sanctions relief.

On May 8, President Donald Trump announced that the USA would be pulling out of the Joint Comprehensive Plan of Action (also called the Iran nuclear deal). United Nations inspectors said Iran was complying with the deal, but Trump felt the agreement did not go far enough.

At the time, under then-president Barack Obama, Washington had pledged to waive secondary USA sanctions as long as Iran continued to abide by the agreement. He said it left the Iranian government flush with cash to use to fuel conflict in the Middle East.

The US hopes its hardline stance will prompt a re-negotiation of the nuclear agreement in a bid to stop their ballistic missile tests.

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"We are still waiting", he said.

Any trade in metal between the USA and Iran will be halted, while the import of Iranian-made cars will also be banned.

The US officials offered no dollar value on the expected impact on Iran's economy.

In this photo provided by Tasnim News Agency, Iran Air's new commercial aircrafts are parked at Mehrabad airport in Tehran, Iran, Sunday, Aug. 5, 2018.

German exports to Iran alone fell by four percent in the first five months of 2018 after rising by 16 percent a year ago, the German Chamber of Commerce and Industry (DIHK) said.

Iran's central bank has lifted a ban on exchange offices, allowing them to resume work in a move aimed at bringing in badly needed hard currencies.

Beginning tomorrow, sanctions will be reimposed on purchase or acquisition of U.S. bank notes by Iran; transactions related to the Iranian rial, activities relating to Iran's issuance of sovereign debt and Iran's automotive sector.

Iran said the United States was "isolated" in its hostility to the Islamic republic on Monday, as it braced for the return of sanctions against a backdrop of political turmoil inside the country.

Bolton also said Monday that the weekend protests in Iran were not due to the United States' incoming sanctions, but reflect longstanding opposition to the regime.

Those sanctions had been lifted by the Obama administration under the terms of the landmark deal in 2015 that gave Tehran an infusion of cash, which the US says paid for terrorist activities.

The foreign currency from the export of Iranian goods could be funneled to the local market, the CBI chief said, adding that the free market itself will determine the value of currency.

The European countries said they have updated a European Union "blocking statute" to protest their companies dealing with Iran from the impact of USA sanctions. Sporadic protests have broken out across the country, something that Rouhani again blamed Monday on the U.S.

The statute also blocks the effects of USA court actions in Europe and allows European firms to recover damages arising from the sanctions from anyone who causes them.

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