Trump warns European Union over decision to protect Iran trade

U.S. President Donald Trump talks about his meeting with Russian President Vladimir Putin during a meeting with House Republicans in the Roosevelt Room of the White House

But on Iran, Mr Trump now has a team who share his contempt for the regime and are even more determined to see its end.

"In November they ratchet up to yet another level".

"Anyone doing business with Iran will NOT be doing business with the United States", the president tweeted. "I am asking for WORLD PEACE, nothing less", he added.

The sanctions reimposed today - targeting access to USA banknotes and key industries such as cars and carpets - were unlikely to cause immediate economic turmoil.

Trump's withdrawal from the agreement in May has infuriated European partners who were determined to keep it alive and now find their businesses operating in Iran faced with the threat of USA legal penalties.

Trump decided this year to pull out of the agreement, ignoring pleas from the other world powers that had co-sponsored the deal, including Washington's main European allies Britain, France and Germany, as well as Russian Federation and China.

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

The European Union's diplomatic chief, Federica Mogherini, said the union, as well as Britain, France and Germany, deeply regretted the United States move.

Many large European firms are leaving Iran for fear of U.S. penalties, and Trump warned of "severe consequences" against firms and individuals that continued to do business with Iran.

Foreign Office minister Alistair Burt makes a statement in the House of Commons London on the latest situation in Egypt
Image Alistair Burt has sought to reassure businesses based in Britain

The European Union, which remains a supporter of the three-year-old nuclear pact with Iran, said it is taking counter-measures to blunt the impact of the sanctions Trump has reinstituted.

There was little word of fresh protests after days of unrest in Mashhad, Isfahan and other major cities - although verifying information remains hard due to severe reporting restrictions.

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

In a TV appearance, Iran's President Hassan Rouhani accused Washington of "wanting to launch a psychological war against the Iranian nation".

The US has long designated Iran as the world's foremost state sponsor of terrorism, Pompeo noted Sunday, adding that the Islamic Republic can not expect to be treated as an equal in the global community until it halts such activities.

Rouhani said that Trump's call for direct negotiations with Iran were "only for domestic consumption in America. and to create chaos in Iran". "Negotiations with sanctions doesn´t make sense".

"We are doing our best to keep Iran in the deal, to keep Iran benefitting from the economic benefits that the agreement brings to the people of Iran, because we believe that this is (in) the security interests not only of our region but also of the world. That is not going to happen".

Heavier US sanctions, aimed at Iran's oil sector, are due in November.

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