Foreign Minister Mohammad Javad Zarif told reporters the global reaction to Mr Trump's move showed that the USA was diplomatically "isolated", but acknowledged the sanctions "may cause some disruption".

Their plans were upended in May, when President Donald Trump made a decision to withdraw from the Iran nuclear accord and reimpose economic sanctions, the first wave of which took effect at midnight on Tuesday.

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

Trump's contempt for the nuclear deal dates back to his time as presidential candidate and on May 8, he made good on a pledge to pull America out of the global agreement.

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 U.S. legal penalties.

"We have ceased our already restricted activities in Iran in accordance with the applicable sanctions", Daimler told Reuters in a statement.

Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences".


The European Union´s diplomatic chief Federica Mogherini said the bloc, as well as Britain, France and Germany, deeply regretted Washington´s move.

"It symbolizes the determination to curb Iran's regional aggression and its ongoing plans to arm itself with nuclear weapons", Mr. Netanyahu said in a video released Monday.

Like many, he sees President Hassan Rouhani as powerless to improve things. Speaking in a television interview, he also demanded compensation for decades of American "intervention" in the Islamic Republic.

The European Union has sought to salvage the nuclear deal and provide legal cover for its companies to continue operating in Iran.

It bans European companies from complying with the USA sanctions, nullifies any U.S. court order against European businesses and makes it legally possible for affected firms to seek compensation.

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

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.


"There is a clear interest around the world", one staffer said.

He says the move is needed to prevent Iranian nuclear ambitions.

"US hypocrisy knows no bounds", he said.

British Minister of State for the Middle East Alistair Burt said Europe can protect its companies from new USA sanctions which were reinstated on Tuesday, as the European Union activated a blocking statute to insulate firms against any fallout.

"They've got to behave like a normal country".

Asked about threats to close the Strait of Hormuz, Mr Bolton said that would be Iran's "worst mistake yet".


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