Trump warns countries against doing business with Iran

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Many analysts have said that this time, the negative impact on Iranian oil trade will be less significant, and Iran will lose only half of the previous loss. Russian Federation and China also signed on to the 2015 deal.

The deal, negotiated during the presidency of Barack Obama, saw Iran limit its controversial nuclear activities in exchange for sanctions relief. He also said talks won't "make sense" once Iran is under sanctions.

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

He said that the sanctions will be "fully enforced" in an "aggressive manner", including countries and companies dealing with Iran.

"Prices have been increasing for three or four months and everything we need has become so expensive, even before sanctions returned", said Yasaman, a 31-year-old photographer in Tehran.

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The sanctions, under an executive order signed by Trump, target financial transactions that involve U.S. dollars, Iran's automotive sector, the purchase of commercial planes and metals including gold.

U.S. President Donald Trump on Monday told Iran to change its "destabilising" behaviour or risk further economic isolation, hours before the reimposition of sweeping sanctions against Tehran, though he left the door open to a new deal.

The European Union opposes the new sanctions, and argues that the nuclear deal, from which the United States withdrew under the Trump administration, was and is vital to their security.

The "Trump Administration wants the world to believe it's concerned about the Iranian people", Iranian foreign minister Mohammad Javad Zarif said in a statement posted to Twitter. Heavier U.S. sanctions, aimed at Iran's oil sector, are due in November.

"It also forbids European Union persons from complying with those [US] sanctions unless exceptionally authorised to do so by the commission", said spokeswoman Mina Andreeva.

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Analysts believe the EU's statute will be hard to enforce and many worldwide companies - facing the alternative of stiff United States penalties and the potential loss of access to USA markets - are withdrawing investment from Iran.

"If you're an enemy and you stab the other person with a knife and then you say you want negotiations, then the first thing you have to do is remove the knife".

Iran's rial currency has lost half its value since April under the threat of revived United States sanctions.

The stiff economic sanctions ratchet up pressure on the Islamic Republic despite statements of deep dismay from European allies.

Mr Trump has called the deal "one-sided", "disastrous" and the "worst I've ever seen". "The riyal is tanking, unemployment in Iran is rising, and there are widespread protests over social issues and labour unrest". Its currency the rial has lost nearly two-thirds of its value in six months.

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There have been rumors that Trump and Rouhani could meet in NY in September on the sidelines of the UN General Assembly - though Rouhani reportedly rejected USA overtures for a meeting at last year's event.

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