Published: Tue, August 07, 2018
Finance | By Kristine Clayton

Pompeo: Sanctions to be enforced until Iran 'behaves like a normal country'

Pompeo: Sanctions to be enforced until Iran 'behaves like a normal country'

There has been some back-and-forth within the administration on whether they'd offer waivers to countries.

"Perhaps that will be the path the Iranians choose to go down", he said.

Today's tranche of sanctions - the first of two sets, with others coming into effect on 4 November - would affect the purchase of U.S. dollars, trade in gold and certain other metals, as well as aviation and the vehicle industry.

The EU said it would now swiftly bring in legal cover for firms in the 28-nation bloc to work with Iran, after the Trump administration rejected European calls for an exemption.

Trump has stated he wants a new deal with Iran that goes beyond curbing its nuclear programme, and ends what America calls its "malign influence" in the region, including its support to Syrian President Bashar al-Assad and militant groups in Lebanon and the Palestinian Territories. Trump abandoned the deal in May. Renewed sanctions targeting Iran's oil industry and banking sector will resume on November 4.

Beginning tomorrow, sanctions will be reimposed on purchase or acquisition of USA bank notes by Iran; transactions related to the Iranian rial, activities relating to Iran's issuance of sovereign debt and Iran's automotive sector.

The protests have often begun with slogans against the high cost of living and alleged financial corruption but quickly turned into anti-government rallies.

Rouhani implied that if the United States signed up again to the nuclear deal and lifted sanctions, then that could pave the ground for negotiations.

If Iran senses "American steel they back down, if they perceive American mush they push forward and right now they perceive steel", said Mark Dubowitz, chief executive of Foundation for Defense of Democracies, a Washington think tank that lobbied against the nuclear deal.

"We are always in favour of diplomacy and talks. but talks need honesty", he said.

Last month, Iran's Supreme Leader Ayatollah Ali Khamenei backed Rouhani's suggestion that Iran may block Gulf oil exports if its own exports are stopped.

In his statement, President Trump took a shot at European countries dedicated to allowing business with Iran to continue as part of the nuclear agreement.

Trump pulled the United States out of the nuclear deal, saying it fails to address Iran's ballistic missile program, the terms by which inspectors visit suspect Iranian nuclear sites, and "sunset" clauses under which some of its terms expire. The reimposition of sanctions on Iran will have major impact on countries like India, with which it has traditional and historic trade relationship.

"All remaining United States nuclear-related sanctions will resume effective November 5, 2018".

The European Union on Monday said that new measures are ready to take effect to protect European businesses from the impact of USA sanctions on Iran.

The Europeans added that a "blocking statute" will go into effect Tuesday, protecting European companies "engaged in legitimate business with Iran" from US sanctions and requiring companies who want to pull business out of Iran to get EU approval first. On Sunday the judiciary said it had arrested a further seven people, including a former deputy central bank governor and five foreign exchange dealers. He said it left the Iranian government flush with cash to use to fuel conflict in the Middle East.

Iran's economy is in a tailspin, and the nation has seen widespread street protests in recent weeks.

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