Iranian president warns of 'war situation' as sanctions resume

  • Iranian president warns of 'war situation' as sanctions resume

Iranian president warns of 'war situation' as sanctions resume

US President Donald Trump unilaterally withdrew Washington from the pact in May despite objections from close allies in Europe.

"India said to the USA that they can't stop before March, they are facing a major currency crisis", explained Joel Hancock, analyst at Natixis.

The new sanctions will particularly hurt Iran's oil industry, a crucial source of money for its anaemic economy.

Iranian President Hassan Rohani responded early on November 5 by saying in a speech on state TV that Iran is facing a "war situation".

The US side was unmoved.

"We have advised SWIFT that it must disconnect any Iranian financial institutions that we designate as soon as technologically feasible to avoid sanctions exposure", Steve Mnuchin told reporters. He said what he called "the terror regime" in Tehran must change its ways. He said the list would be provided on Monday, when the new sanctions are set to take effect.

The Iranian president said that the country will undercut Washington's plan for sanctions on its energy and banking sectors.

Broader oil markets remain constrained by trade fears and impending oversupply. But the sword has two edges: Iran is also the OPEC cartel's third-largest producer. "We think China and Iran carrying out normal cooperation under the framework of worldwide law is lawful and reasonable, and (this right) should be respected and protected", he added.

European powers which continue to back the nuclear deal said they opposed the reapplication of sanctions and major oil buyer China said it regretted the move.

Saudi Arabia is the only country with the capacity to make up for lost Iranian oil production.

Salami made the remarks on a day when the authorities in Iran organize anti-U.S. gatherings nationwide, unleashing slogans to mark the 1979 seizure of the US embassy in Tehran.

His decision was widely criticized overseas and by Democrats at home, who said that while imperfect, the pact had placed the Iranian nuclear program under the tightest scrutiny ever.

China, India, South Korea, Japan and Turkey - all top importers of Iranian oil - are among eight countries expected to be given temporary exemptions from the sanctions to ensure crude oil prices are not destabilised.

Asked about it on "Fox News Sunday", Pompeo answered, "The Iranian banks that engage in sanctionable behavior will be sanctioned by the Department of Treasury, period, full stop".

An expanded United States blacklist, announced in October, took some in Iran by surprise as it targeted banks exempt from earlier rounds of sanctions.

Speaking at a daily news briefing in Beijing, Foreign Ministry spokeswoman Hua Chunying did not directly comment on whether China had been granted exemption from the Iran sanctions by the United States.