Iran facing tough new sanctions reality

Iranian authorities have barely mentioned days of protests in the cities of Isfahan Shiraz Mashhad and Tehran driven by concerns over the economy as well as wider anger at the political system

Describing the JCPOA as "a frightful, one-sided deal", Trump said that it failed to achieve the fundamental objective of blocking all paths to an Iranian nuclear bomb, and it "threw a lifeline of cash to a murderous dictatorship that has continued to spread bloodshed, violence, and chaos".

Mr Rouhani urged Mr Trump to "make peace" with Iran on Sunday 22 July.

Iran's economy has rapidly deteriorated in recent months partially due to fears over the imposition of further USA sanctions, igniting street protests in many Iranian cities over economic hardships.

Fear of renewed sanctions has sparked a currency crisis and caused many foreign companies to pull out their business from Iran.

Iran's President Hassan Rouhani said on Monday (Aug 6) that Washington's call for new nuclear negotiations at the same time as it reimposes crippling sanctions "doesn't make sense" and is an attempt at "psychological warfare".

"If you stab someone with a knife and then you say you want talks, then the first thing you have to do is remove the knife", Mr Rouhani said.

A senior administration official said Brussels" imposition of a "blocking statute" protecting European businesses trading with Iran was "not something we're particularly concerned by'. "We have no problems, so why should our people worry?", Hemmati said in a live televised interview. The sanctions targeting Iran's oil industry could cut off a crucial source of hard currency. The diplomat noted that fight against terrorism was one of the Iranian forces' tasks in Syria, apart from granting support to the war-torn country's government.

But the USA sanctions strategy has several weak spots, especially a reluctance by Europe and China to curtail business with Iran.

The European Union voiced regret on Monday at the looming US sanctions. "We are very intent on using these authorities", a third United States official said, and will "use them aggressively".

The White House said Trump will continue to stand up to the Iranian regime's aggression, and the U.S. will fully enforce the reimposed sanctions.

Iranian state TV on August 5 said thecountry will ease its foreign-exchange rules in a bid to halt the collapse of the rial, which has lost about half its value since April.

Iran's net official reserves are projected to decline this year to $97.8 billion, enough to finance about 13 months of imports, the International Monetary Fund estimated in March.

"Despite the sanctions, we will prove that we stick to our word and honour global deals", Hassan Rowhani said in an interview on state broadcaster IRIB, calling the renewed sanctions part of a "psychological war" being waged by America.

Trump warned of "severe consequences" for people or entities that fail to wind down economic activities with Iran.

"An informed diplomatic source said Sunday that Saudi Arabia had agreed to grant a visa to the head. of Iran's interests section", reported the state-owned IRNA Iranian news agency adding that "Observers saw a positive diplomatic step in Tehran-Riyadh relations".

"The president has been very clear", a senior administration official told reporters in a call explaining the sanctions Monday.

Iran's currency has lost around half its value since Trump announced the United States would withdraw from the pact. In a statement Monday, the EU, UK, France and Germany said they "deeply regret" the U.S. action.

Outside U.S. borders, however, the Trump administration's decision to snap sanctions back into place has been received with a mixture of regret, anger and alarm - especially among the other countries that engaged in the deal, and that have promised to stick with it despite the U.S. decision to renege on its commitment.

Meanwhile, hardliners in Tehran are opposed to the idea of talks with the US despite the collapsing Iranian economy.

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