Iran vows to ignore 'illegal' United States sanctions

New U.S. Sanctions Against Iran Go Into Effect

New U.S. Sanctions Against Iran Go Into Effect

Aside from restrictions on oil imports, the administration added more than 700 names - including individuals, entities, vessels and aircraft linked to the energy and financial sectors and other segments of Iran's economy - to the United States list of sanctioned entities.

Addressing a presser here, Pompeo cited Denmark's intelligence uncovering an Iranian assignation plot as proof for the need to impose the sanctions and warned Iran to "either do a 180-degree turn from its outlaw course of action and act like a normal country, or it can see its economy crumble".

"This is an economic war against Iran but".

Trump has said the deal, which he unilaterally withdrew from in May, is "defective at its core" and will not prevent Iran from developing a nuclear bomb.

In a statement, US Treasury Secretary Steven Mnuchin said the move "should make clear to the Iranian regime that they will face mounting financial isolation and economic stagnation until they fundamentally change their destabilizing behaviour".

"Due to golden opportunities for Iran and its allies in the world, including China, Russia and the European Union, we all want a way to defeat the United States sanctions, because foreign companies can not work with bullies".

In a statement issued over the weekend, the Kremlin's foreign ministry "strongly condemned" the new wave of US sanctions, arguing that the move deals "another powerful blow to the Nuclear Nonproliferation Treaty (NPT)".

The United States will exempt China, India and Japan from oil sanctions on Iran, Secretary of State Mike Pompeo said on Monday, while vowing to be "relentless" in pressuring Tehran.

India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports.

South Korean Trade Minister Kim Hyun-chong says the waiver "opens breathing room" for South Korea's oil refining industry and companies that export to Iran. The reinstated sanctions follow the Trump administration's decision in May to pull out of the worldwide nuclear deal.

However eight countries have been granted a temporary exemption for six months despite United States warning previously that it would be harder for Iran's oil importers to get a waiver. "We have the toughest sanctions ever imposed, but on oil we want to go a little bit slower because I don't want to drive (up) the oil prices in the world", he told reporters before flying to a campaign event.

Oil prices declined on Tuesday after Washington granted sanctions exemptions to top buyers of Iranian oil, lifting supply concerns and turning the market's focus to worries that an economic slowdown may curb fuel demand.

FALLING EXPORTS Iran said it would ignore the sanctions.

The Abu Dhabi National Oil Co plans to boost oil production capacity to 4 million bpd by the end of 2020 and to 5 million bpd by 2030, it said on Sunday, from output of just over 3 million bpd.

"[The] infrastructure allows European companies to avoid USA sanctions in the future ... long-term it's very worrying for the future of US sanctions infrastructure", Ashford said.

The sanctions are designed, in part, to force Iran's main customers to stop buying its oil.

But they were opposed by other signatories to the 2015 nuclear deal - Britain, France, Russia, China, Germany and the EU.

The IAEA emphasized in its reports earlier that Iran was committed to the agreement and its nuclear activity was under strict control and subject to thorough checks.

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