Prepare for $90 oil after sanctions against Iran take effect

Prepare for $90 oil after sanctions against Iran take effect

So-called snapback sanctions, due to come into force early on Tuesday, target Iranian purchases of US dollars, metals trading, coal, industrial software and its auto sector.

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.

"We are determined to protect European economic operators engaged in legitimate business with Iran", said High Representative Federica Mogherini and E3 foreign ministers, Jean-Yves Le Drian (France), Heiko Maas (Germany) and Jeremy Hunt (UK) in a joint statement.

Zarif suggested it was hard to imagine negotiating with Trump after he had torn up the 2015 nuclear deal, on which Iran and world powers had spent the "longest hours in negotiating history".

Iran accused the United States of reneging on the nuclear agreement, signed by the Obama administration, and of causing recent Iranian economic unrest.

"We deeply regret the re-imposition of sanctions by the U.S", the European Union said in a statement.

As of midnight, harsh sanctions on Iran have kicked in as part of the administration's strategy to keep Tehran from achieving its goal of building a nuclear bomb.

The EU has taken the unprecedented step in a bid to salvage the nuclear deal struck with Iran in 2015. "I can't afford to buy food, pay the rent." said a construction worker on the streets of the capital.

White House national security adviser John Bolton said on Monday Iran's only chance of escaping sanctions would be to take up an offer to negotiate with Trump for a tougher deal.

In Washington, senior administration officials said that while critics of Trump's withdrawal from the Iran pact predicted that the threat of unilateral sanctions reimposed by the United States would be ineffective, the reality has shown the opposite.

The European countries have promised to try to mitigate the impact of renewed USA sanctions to persuade Tehran to continue to abide by the deal's terms.

"Anyone doing business with Iran will NOT be doing business with the United States", Trump vowed on Twitter. "But talks need honesty".

The sanctions follow the USA withdrawal from the Joint Comprehensive Plan of Action, also known as the Iran nuclear deal, earlier this year. "But if the government has a serious plan they can control the situation".

US President Donald Trump has warned other countries against doing business with Tehran, saying he had imposed "the most biting" sanctions on the country.

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 worldwide community until it halts such activities.

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

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