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US President Donald Trump withdrew in May from the deal that his predecessor Barack Obama had reached with Iran, calling it a failure because it addressed only the clerical regime's nuclear program.

"In general, one can say that the interests of nuclear nonproliferation are not placed in the hierarchy of Washington's foreign policy priorities as high as it is declared, otherwise the United States would not have acted so irresponsibly and defiantly", he concluded.

Senior Iranian officials have dismissed concerns about the impact to its economy.

The sanctions cover 50 Iranian banks and subsidiaries, more than 200 persons and vessels in its shipping sector, and targets Tehran's national airline, Iran Air, and more than 65 of its aircraft, the statement said.

Iranian President Hassan Rouhani said that his country "will continue to sell our oil", despite the sanctions.

"This is an economic war against Iran but". America should learn that it can not use the language of force against Iran.

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"U.S. sanctions on Iran proved to be less severe than previously anticipated", said Hussein Sayed, chief market strategist at futures brokerage FXTM.

"US bullying is backfiring".

"What we have authorized is very narrow, very limited, very time-limited as well, but important nonetheless that these non-proliferation projects are not things that are taking place without some ability to see what's going on", Pompeo said. "It's the reason for President Trump's policy".

European leaders and representatives from Russian Federation and China defended the deal and urged Trump to allow them to continue to uphold it. He said Iran was continuing its pursuit of nuclear weapons, and that the sanctions relief gave Iran cash to carry out destabilizing activities in the Middle East.

Asked about it on "Fox News Sunday", Pompeo answered, "The Iranian banks that engage in sanctionable behavior will be sanctioned by the Department of Treasury, period, full stop". "I promise you that doing business with Iran in defiance of our sanctions will ultimately be a much more painful business decision".

Diplomats told Reuters last month that a new European Union mechanism to facilitate payments for Iranian oil exports should be legally in place by November 4 but not operational until early next year. The Europeans have mounted a drive to save the agreement without the U.S., fearing that the new sanctions will drive Iran to pull out and resume all of its nuclear work'. As long as Iran met its obligations under the deal, Britain would be committed to it too.

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Iran's foreign ministry is shrugging off the re-imposition of USA sanctions on Iran, saying it's nothing new and that the country has gone through a wider range of sanctions in the past.

On Saturday, Iran's Supreme Leader Ayatollah Ali Khamenei denounced the reimposition of US sanctions, saying Trump had hurt USA standing in the world and that Iran would ultimately come out as the victor. But Brent crude was steady at $72.83 by 1230 GMT. U.S. crude futures were up about 1 percent at $US63.85 a barrel.

The "senior" cleric, who is Friday Prayer leader in Mashhad, also warned Iran could send the price of oil skyrocketing to $400 a barrell by confiscating tankers and creating a blockage in the Persian Gulf.

The curbs come as the United States is focused on USA congressional and gubernatorial elections on Tuesday.

The officials said the USA will continue this maximum pressure campaign on Iran until it stops its malign behavior in the Middle East, which includes being the world's number one state sponsor of terrorism. "Right now they just want to survive", he told a rally in Tennessee, Reuters reported.

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India and Iran still have to figure out shipping and insurance details for a smooth trade. Kudlow, however, did not specify when the two leaders spoke on trade issues.