U.S. economic sanctions against Iran are back in effect

SANCTIONS Iran gives conditions to stage talks with US

U.S. President Donald Trump on Monday told Iran to change its "destabilising" behaviour or risk further economic isolation, hours before the reimposition of sweeping sanctions against Tehran, though he left the door open to a new deal. European allies said they "deeply regret" the US action.

The European Union's diplomatic chief Federica Mogherini said the bloc deeply regretted Washington's move.

Iranian President Hassan Rouhani struck a hard line Monday as the US restored some sanctions that had been lifted under the 2015 nuclear deal.

Trump signed an executive order restoring the penalties on Monday, which he said would put "maximum economic pressure" on the country.

"Today, the entire world has declared they are not in line with USA policies against Iran", Zarif said in a speech, according to the semi-official ISNA news agency.

Iranian president Hassan Rouhani said that Iran can still rely on China and Russian Federation to keep its oil and banking sectors afloat. Protesters in the Iranian capital swarmed its historic Grand Bazaar on Monday, news agencies reported, and forced shopkeepers to close their stalls in apparent anger over the Islamic Republic's troubled economy, months after similar demonstrations rocked the country.

On Sunday, it eased foreign exchange rules, allowing unlimited tax-free currency and gold imports, and reopening exchange bureaus after a disastrous attempt to fix the value of the rial in April led to widespread black-market corruption.

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A senior administration official told Fox News these restored sanctions are created to constrict the revenue Iran uses to fund "terrorists, dictators, proxy militias, and the regime's own cronies".

The "Trump Administration wants the world to believe it's concerned about the Iranian people", Iranian Foreign Minister Mohammad Javad Zarif said in a statement posted to Twitter. He added: "US hypocrisy knows no bounds".

The EU announced in May that it is "determined to preserve" the Iran nuclear deal despite the us withdrawal.

National security adviser John Bolton said Iran's leadership is on "very shaky ground", but he insisted economic pressure from the Trump administration is not an attempt at "regime change".

Israeli Prime Minister Benjamin Netanyahu, a firm foe of the Iranian government, said the sanctions symbolize "the determination to block Iran's regional aggression as well as its continuous plans to arm itself with nuclear weapons".

He called on the countries of Europe to join the USA, saying, "The time has come to stop talking; the time has come to do". Behnam Ben Taleblu of the Foundation for Defence of Democracies said they "signal that the administration is serious in its intent to recreate the leverage that existed between the United States and Iran prior to the nuclear deal". The US ability to force big powers to go along with unilateral sanctions is very much being tested.



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