White House's John Bolton says Iran should 'come to the table'

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National flags of Iran fly above the Modarres highway seen from the Tabiat pedestrian bridge in Tehran on Saturday.

Those sanctions go back in place on Monday.

A man walks past an anti-U.S. mural in Tehran, Iran October 13, 2017.

The financial crisis in Iran could worsen to the point that mass protests make it impossible for the regime to hold on to power - though economic pressures risk galvanising growing anti-American sentiment and support for hardliners. Permits allowing the import of Iranian carpets and food, such as pistachios, will be revoked.

The Iranian rial has been particularly hard hit on expectations of USA restrictions on currency transactions.

The 2015 agreement, known as the Joint Comprehensive Plan of Action, of JCPOA, brought a suspension of USA sanctions in exchange for Tehran's agreement to end its nuclear and ballistic missile programs.

He added: "They have got to behave like a normal country".

USA officials said the drills appeared created to send a message to Washington. "None of this needs to happen".

Trump "will meet with the Iranian leadership at any time to discuss a real comprehensive deal that will contain their regional ambitions, will end their malign behavior and deny them any path to a nuclear weapon", one official said.

At the stroke of midnight on Tuesday, the USA will sanction Iran's central bank, sending a clear message to its European allies: Do business with the U.S., or do it with Iran, but not both.

The European Commission vowed to oppose the new United States sanctions regime, updating its so-called Blocking Statute that is aimed at "sustaining trade and economic relations between the EU and Iran".

The accord saw Iran limit its controversial nuclear activities in exchange for sanctions relief.

Under that deal, nuclear-related Western sanctions on Iran were lifted.

In November, the USA will follow up with another round of sanctions targeting Iran's lifeblood: its oil exports.

Iran says the sanctions are endangering lives by blocking the sale of new planes and spare parts for its ageing fleets.

After months of fierce rhetoric, Trump surprised observers last week when he offered to meet with Rouhani without preconditions.

The EU said it would now swiftly bring in legal cover for firms in the 28-nation bloc to work with Iran, after the Trump administration rejected European calls for an exemption.

His statements were interpreted as a hint at Iran's readiness to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile U.S. action against Iran.

The EU and other parties to the 2015 nuclear deal, China and Russian Federation, are working to maintain trade with Iran, which has threatened to stop complying with curbs on its nuclear work if it fails to see the economic benefits of relief from sanctions under the deal.

Trump has argued that the Obama-era agreement was deeply flawed.

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

Demonstrations resurfaced in May amid water shortages and a continued tumbling of the Iranian rial over fears of the effects of looming USA sanctions on the Iranian economy.

The foreign currency from the export of Iranian goods could be funneled to the local market, the CBI chief said, adding that the free market itself will determine the value of currency. "At that time, we were warned from experts... that the threat of unilateral sanctions from the USA would not be effective, but three months out we have a very different picture".

For instance, USA officials in recent years have accused both the regular Iranian navy and the Iranian Revolutionary Guards Corps of routinely harassing American warships in the Gulf.

"Our stated policy has not been regime change, it has been to modify the regime's behavior", an administration official said.

The sanctions will squeeze the Iranian economy much more, and the government has already started talking about the need to return to a n economy of resistance.

"The Blocking Statute allows European Union operators to recover damages arising from United States extraterritorial sanctions from the persons causing them and nullifies the effect in the European Union of any foreign court rulings based on them", the Commission said in a press release.

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