US wants to work with Europeans on new Iran deal: Pompeo

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Neither the AP report nor Trump's decision to violate the Iran deal are wholly surprising: previously, European leaders had said they were willing to work with Trump to address any legitimate concerns he had with the deal, agreeing to impose sanctions on Iran if it violated any of the parameters, but Trump wasn't satisfied.

It is "possible" the USA may impose sanctions on European companies that keep doing business with Iran, national security adviser John Bolton warned Sunday on CNN's "State of the Union".

The letter was written to UN Secretary General Antonio Guterres on May 10, two days after Trump made the historic move to pull out of the agreement and reimpose sanctions on Iran.

In her latest comments on Iran and sanctions, Chancellor Merkel said: "It is in our interest to have a strong transatlantic relationship".

The decision overturned years of painstaking diplomacy and left European Union allies scrambling to save the hard-fought deal, as well as to protect the interests of their companies which do business with Iran.

In the other areas, US and European diplomats have some shared views on how to approach Iran, which could be carried over if there were a new agreement.

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Planemakers Airbus and Boeing, oil companies and auto manufacturers like France's Renault and Peugeot could be among companies hardest hit.

The 2015 agreement between major powers and Iran set limits on its nuclear activities in exchange for the lifting of sanctions. "If crude oil can hold these levels for a while, I think investors would begin factoring in the improving macro fundamentals".

President Hassan Rouhani had said on Tuesday that Tehran would remain in the deal, provided its benefits stayed in force with its remaining signatories. This action reversed an ill-advised and unsafe policy and set us on a new course that will address the aggressive and hostile behavior of our enemies, while enhancing our ties with partners and allies.

As a result of Trump's decision to exit the nuclear deal and re-impose sanctions on Iran, many European firms, which had rushed to do business with Tehran, stand to lose billions of dollars in deals that now have to be cancelled.

Iran insists its nuclear program is for civilian use and denies supporting extremism.

Trump's triggering of economic sanctions now confronts Iran's regime with a dilemma: if it clings to its nuclear ambitions it risks provoking a renewed popular rebellion against its misplaced priorities, in addition to a possible military confrontation with the United States. The rest of the world expressed disappointment and condemnation over a decision most found puzzling from a strategic perspective.

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On Thursday France's top diplomat Jean-Yves Le Drian slammed those conditions, saying Washington needed to negotiate with its European allies on any sanctions that might affect their companies.

"Is the US going to impose sanctions on European companies that continue to do business with Iran?". "That is what we have done and that is what we will continue doing", Netanyahu said.

Trump has stated that the deal should have limited Iran's missiles program - specifically keeping Iran from building an intercontinental ballistic missile.

US President Donald Trump.

He has also warned that Iran will be punished if it returns to military-scale uranium enrichment. "So the verification, what is in there, is actually pretty robust as far as our intrusive ability [to check on whether Iran is complying]". The United States intelligence community has continued to find that Iran is meeting its responsibilities under the deal and has reported as much to Congress.

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