Donald Trump restores Iran sanctions, says open to forge new nuclear deal

US President Donald Trump today reimposed sanctions on Iran, which were lifted as part of the 2015 Iranian nuclear deal, but said he remains open to forging a new “more comprehensive” deal with the Islamic Republic.

In May, Trump had announced to withdraw from the Iranian nuclear deal. The reimposition of sanctions on Iran will have major impact on countries like India, with which it has traditional and historic trade relationship.

“Today, the US is taking action to reimpose nuclear-related sanctions with respect to Iran that were lifted in connection with the Joint Comprehensive Plan of Action of July 14, 2015 (the JCPOA),” Trump said. These actions include reimposing sanctions on Iran's automotive sector and on its trade in gold and precious metals, as well as sanctions related to the Iranian rial. These measures will take effect on August 7.

“All remaining US nuclear-related sanctions will resume effective November 5, 2018. These include sanctions targeting Iran's energy sector, including petroleum-related transactions, as well as transactions by foreign financial institutions with the Central Bank of Iran,” the US president said.

At the same time, Trump said he remains open to reaching a “more comprehensive deal” that addresses the full range of the Iranian regime's malign activities, including its ballistic missile programme and its support for terrorism. “The US welcomes the partnership of likeminded nations in these efforts.”

Reacting to Trump’s comment that he was open for talk with Tehran, his Iranian  counterpart Hassan Rouhani said the country could hold talks with the US only if Washington proved its trustworthiness after it exited a nuclear deal and reimposed sanctions on the Islamic Republic.

“We are always in favour of diplomacy and talks ... But talks needs honesty ... The US reimposes sanctions on Iran and pulls out of the nuclear deal, and then wants to hold talks with us,” Rouhani said in a speech broadcast live on state television. “Trump's call for direct talks is only for domestic consumption in America ... and to create chaos in Iran.” 

EU vows to counter sanctions on Iran

The European Union vowed on Monday to counter US President Donald Trump's renewal of sanctions on Iran, in a test of the EU’s ability to preserve a deal that saw Iran limit its nuclear ambitions in exchange for removing strict curbs on its economy.

As Washington’s so-called "snapback" sanctions are reinstated on Tuesday, a new EU law to shield European companies will also take effect to try to mitigate what EU officials say is their "unlawful" reach beyond US borders.

Despite protests from European allies, US Secretary of State Mike Pompeo said Washington would fully enforce the sanctions. EU diplomats said they were awaiting details on Monday on how they will be implemented.

The EU and other parties to the 2015 deal, China and Russia, are working to maintain trade with Iran, which has threatened to stop complying with curbs on its nuclear work if it fails to see the economic benefits of relief from sanctions under the deal.

"We deeply regret the re-imposition of sanctions by the US," the bloc said in a joint statement with the foreign ministers of France, Germany and Britain.

They pledged to work on preserving financial flows and Iran's oil and gas exports - a lifeline of its economy.