USA tariffs and sanctions policies are likely to keep investors on their toes in the coming week as European politicians and policymakers continue their summer break, while economic data from Germany and the euro zone will also be in focus.
In a speech Monday that addressed Iran's troubled economy and the 2015 nuclear deal, Iranian Supreme Leader Ayatollah Ali Khamenei said that he would "prohibit" talks with the United States, The New York Times reported. "They (the Americans) are exaggerating the possibility of a war with Iran".
Earlier, Khamenei said that Iran would not talk with the United States. In this regard, let me say a few words to the people: "THERE WILL BE NO WAR, NOR WILL WE NEGOTIATE WITH THE US", Khamenei continued.
But US Secretary of State Mike Pompeo quickly walked back on some of the president's comments, listing several demands for such a summit to take place.
Washington reimposed sanctions against Iran on August 7.
Khamenei, whose remarks on Monday come amid a sharp fall in the rial currency that has prompted angry protests, criticized the government of President Hassan Rouhani, a pragmatist cleric who championed the 2015 deal aimed at ending Iran's political and economic isolation.
Beijing has indicated that it will not halt its imports of Iranian oil, although other countries, including U.S. allies Japan and South Korea, have scaled back their purchases, with some European energy firms doing the same. "War will not happen and we will not enter talks".
"The agreement between the European Union and USA can only be a first step".
Despite mounting USA pressure on Iran to curb its regional activities, Zarif said Iran will not rein in its influence in the Middle East. "With better management and more efficient planning, we can resist the sanctions and overcome them", he added, in an apparent effort to deflect public anger over the economy towards Mr Rouhani.