As sanctions bite, where next for Trump's Iran strategy?

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Senior Iranian officials have warned the country would not easily yield to a renewed USA campaign to strangle Iran's vital oil exports. "The United States is going to enforce these sanctions". That's what America is trying to get Iran to stop doing.

United States officials say Mr Pompeo's speech is the latest step in a communications offensive launched by the Trump administration that is meant to foster unrest in Iran, and help pressure its government to end its nuclear programme and support of militant groups. Sanctions on trade in Iranian metals and automobiles go back into effect Monday.

Despite opposition from European allies, Trump in May pulled the United States out of a 2015 deal between world powers and Tehran under which global sanctions were lifted in return for curbs on Iran's nuclear programme.

U.S. Defense Secretary Jim Mattis said July 27 there was no policy that had been put in place with the goal of collapsing or changing the Iranian regime. There have been widespread protests in response to deteriorating economic conditions.

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When President Donald Trump said he'd be open to talks with his Iranian counterpart, Hassan Rouhani, Iran dismissed the idea pretty quickly. Iran's Foreign Ministry spokesman Bahram Qasemi said in a press conference that the United States has to have respect for Iran and worldwide law in order for dialogue to occur, according to IRNA news agency.

Iran has also been hit by falling salaries set against the rising cost of living, while water shortages and power outages have also hit the embattled country.

At the conference, Pompeo lobbied for support from other countries, but the Trump administration's posture on Iran is not popular in several parts of the world because it abandoned a deal that was viewed as largely successful in curtailing Iran's nuclear ambitions.

"Today we are at a very critical point in history regarding the nuclear deal, and Europe's transparent measures to compensate for the US' unlawful withdrawal from it are very important for the Iranian nation", Rouhani said after talks with new British Ambassador Rob Macaire.

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"We are happy to talk if there's an arrangement that is appropriate, that could lead to a good outcome", he said.

The move, which the Central Bank of Iran will execute in collaboration with local knowledge-based organizations, will begin with the main objective of clearing bank transactions.

"We need them to change their behavior on a number of threats they can pose with their military, with their secret services, with their surrogates and with their proxies", Mattis told Pentagon reporters.

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