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Some of the sanctions took effect overnight, with others taking effect in November, and President Trump tweeted about them early this morning.

European countries fear that by abandoning the deal, Washington risks undermining Rouhani and strengthening the hand of his more hardline opponents, who have long argued that the West would never allow Iran to prosper. "The EU, along with China, Russia, France, Germany and the United Kingdom, was also a signatory to the deal and has not withdrawn".

Trump pulled the USA out of the deal limiting Iran's nuclear activities.

He also praised the "most biting sanctions ever imposed" and said they would "ratchet up to another level" in November.

His tweet early on Tuesday was a warning to business partners, after the European Union announced it would try to shield companies continuing to trade with Iran.

"It symbolizes the determination to curb Iran's regional aggression and its ongoing plans to arm itself with nuclear weapons", Mr. Netanyahu said in a video released Monday.

"We are always in favour of diplomacy and talks".

So-called snapback sanctions, due to come into force early on Tuesday, target Iranian purchases of US dollars, metals trading, coal, industrial software and its auto sector.

It comes three months after President Trump pulled the USA out of the global accord limiting Iran's nuclear activities.

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"Today, the entire world has declared they are not in line with U.S. policies against Iran", Zarif said in a speech, according to the semi-official ISNA news agency.

Asked about threats to close the Strait of Hormuz, Mr Bolton said that would be Iran's "worst mistake yet".

Saudi Arabia and Israel, Iran's key regional rivals, are among the only countries to strongly support the reimposition of USA sanctions. Renault, Total, Peugeot, General Electric, Boeing, Hyundai, Mazda, IndusInd Bank and other major companies have either left Iran or asked their investors to do so before the return of United States sanctions.

"We are determined to protect European economic operators engaged in legitimate business with Iran", she said in a statement.

With US sanctions set to return against Iran on Tuesday, Zarif acknowledged there were hard times ahead.

"If you stab someone with a knife and then you say you want talks, then the first thing you have to do is remove the knife", Rouhani said in a speech broadcast live on state television. "But talks need honesty".

"I remain open to reaching a more comprehensive deal that addresses the full range of the regime's malign activities, including its ballistic missile program and its support for terrorism", Trump said. "The riyal is tanking, unemployment in Iran is rising, and there are widespread protests over social issues and labour unrest".

But the last two days have seen an impressive 20 percent rally in the value of the rial after the government announced new foreign exchange rules and launched a corruption crackdown that included the arrest of the central bank's currency chief.

China, Russia and Turkey have already indicated that they would not comply with the unilateral United States sanctions.