Korea braces for US sanctions on Iranian imports including oil

Iran’s President Hassan Rouhani delivers a speech after being sworn in before parliament in Tehran

He said: "There are reports of Iran possibly taking drastic measures but we are hearing that at this point Iran doesn't want to escalate tensions with the US".

He also said Tehran expects the European countries to bring forward a practical package of proposals to salvage Iranian nuclear deal, also known as JCPOA, after the US pull-out in May. Trump abandoned the deal in May. "They are imposing sanctions on Iranian children, patients and the nation", the president said.

Iran's rial has lost more than half its value since April, in part over fears of renewed sanctions, but also thanks to an ill-judged attempt to fix the value of the rial that month and make it illegal to trade at a higher rate. He again justified leaving the nuclear agreement (JCPOA) and left the door open to negotiations for new deal in the future. "But talks need honesty", Rouhani said.

It was not immediately clear whether the plan would create enough hard currency inflows to ease the demand for dollars and help end a panic-buying of hard currencies by many Iranians.

President Trump says his administration is implementing an aggressive stance toward Iran, despite being prepared to talk.

The move, which follows through on Trump's May 8 vow to unilaterally withdraw from the multinational nuclear agreement, cheered Israeli Prime Minister Benjamin Netanyahu and members of the president's party, who had long railed against the deal. He also signed support for the Iranian people.

In exchange, United Nations-approved sanctions were lifted in January 2016, and Iran was allowed to resume trading oil and gas on the global market.

European foreign affairs chiefs have pledged to protect firms against the impact of United States sanctions for doing business with Iran.

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A number of other countries have asked European Union officials for details on the blocking regulations as they also explore ways to bypass sanctions and their effect on oil markets: "There is a clear interest around the world", one European Union official said.

"The next 90 days will see increasing pressure culminating in" the reimposition of sanctions on Iran's energy sector, the third official said. Sporadic protests have broken out across the country, something that Rouhani again blamed Monday on the U.S.

Another senior administration official said the administration is "not looking to grant waivers" to companies or governments who want to continue to receive Iranian oil imports, but is "glad to discuss and look at requests on a case-by-case basis". Syrian President Bashar Assad has said that only Iranian officers, not troops, were operating in his country.

Last month, U.S. officials familiar with the matter said the Trump administration had launched a communications campaign to foment unrest and put pressure on Iran to end its nuclear programme and its support of armed groups. They said the government's handling of social and labor protests was a concern. The White House statement on Monday also said that those who "fail" to abide by the USA sanctions will "risk severe consequences".

Secretary of State Mike Pompeo said Monday that the sanctions will "counter its malign activities".

Mr Trump argues that the deal will not prevent Iran from finding ways to develop nuclear weapons.

Iran's Revolutionary Guards confirmed on August 5 it had held war games in the Gulf over the past several days, saying they were aimed at "confronting possible threats" by enemies, state news agency IRNA reported.

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