Donald Trump’s move to reimpose US sanctions on Iran described as ‘psychological warfare’

Donald Trump has signed an executive order to reimpose controversial sanctions on Iran.

The US president’s move was branded “psychological warfare” by Iranian president Hassan Rouhani.

The sanctions went back into effect early on Tuesday and target financial transactions that involve US dollars, Iran’s automotive sector, the purchase of commercial planes and metals including gold.

Further sanctions targeting Iran’s oil sector and central bank are to be reimposed in early November.

Donald Trump has reimposed US sanctions on Iran (Picture: Rex)
Donald Trump has reimposed US sanctions on Iran (Picture: Rex)

It is three months since Mr Trump pulled the US out of the international accord limiting Iran’s nuclear activities.

He called the landmark 2015 agreement “horrible,” claiming it left the Iranian government flush with cash to fuel conflict in the Middle East.

Iran accused the US of reneging on the nuclear agreement, signed by Barack Obama’s administration, and of causing recent Iranian economic unrest.

European allies said they “deeply regret” the US action.

But Mr Trump said: “We urge all nations to take such steps to make clear that the Iranian regime faces a choice: either change its threatening, destabilising behaviour and reintegrate with the global economy, or continue down a path of economic isolation.”

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Mr Trump warned that those who do not wind down their economic ties to Iran “risk severe consequences”.

Despite his claims, the accord “is working and delivering on its goal” of limiting Iran’s nuclear programme, said a statement by European Union foreign policy chief Federica Mogherini and the foreign ministers of France, Germany and the UK.

The ministers said the Iran deal is “crucial for the security of Europe, the region and the entire world,” and the European Union issued a “blocking statute” on Monday to protect European businesses from the impact of the sanctions.

Iranian president Hassan Rouhani said that Iran can still rely on China and Russia to keep its oil and banking sectors afloat.

Speaking in a television interview, he also demanded compensation for decades of American “intervention” in the Islamic Republic.

Mr Rouhani said: “They want to launch psychological warfare against the Iranian nation.

“Negotiations with sanctions doesn’t make sense.”

“We are always in favour of diplomacy and talks… but talks need honesty.”

Iranian president Hassan Rouhani addresses the nation in a televised speech in Tehran on Monday (Picture: AP)
Iranian president Hassan Rouhani addresses the nation in a televised speech in Tehran on Monday (Picture: AP)

Months of uncertainty surrounding the sanctions have already further hurt Iran’s economy. The country’s rial currency has fallen in value and the downturn has sparked protests across the nation.

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.

But, he said, the reimposed sanctions would endanger “ordinary Iranians”. He added: “US hypocrisy knows no bounds.”

US secretary of state Mike Pompeo said sanctions are an important pillar in American policy toward Iran and will remain in place until the Iranian government radically changes course.

“They’ve got to behave like a normal country. That’s the ask. It’s pretty simple,” said Mr Pompeo.

He said the US has long designated Iran as the world’s foremost state sponsor of terrorism.