Iran official says Europe has 60 days to give nuclear 'guarantees'

Europeans scramble to save Iran deal after Trump reneges

Valiollah Seif, the governor of the Iranian central bank, was named a "specially designated global terrorist" along with another senior official, Ali Tarzali, who works in the central bank's worldwide division.

Treasury Secretary Steven Mnuchin said the penalties targeted those who had funnelled millions of dollars to the group, funding its "malign activity".

However, the European Union (EU) is now rushing to shield Iran from these sanctions.

US National Security Advisor John Bolton has suggested that European countries could face sanctions imposed by the US if they continue to be involved with Iran during an interview. "It's hard to compel private companies to do business and risk sanctions".

In so doing, Trump said USA economic sanctions on Iran would be reimposed. "If you look at the advances that Iran has made under cover of this agreement, it's conventional military and terrorists advances in Iraq, in Syria, in Lebanon, in Yemen since 2015, Iran was really on the march".

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Theresa May reiterated the UK's position on the Iran deal during a phone call with President Trump on Friday, and noted the commitment from the United Kingdom and European partners in preventing Iran from developing a nuclear weapon. "I certainly stand by what I said at the time, but those are my opinions then", Bolton said Sunday. "But not anymore!", Trump tweeted.

A prominent Iranian cleric is threatening two Israeli cities with destruction if the Jewish state "acts foolishly" and retaliates against it again.

These reported remarks come as Iranian Foreign Minister Mohammed Javad Zarif embarked on a diplomatic tour to try and save the nuclear deal.

It was the second time he'd made the claim, after stating it in his speech on Tuesday announcing that the U.S. would reimpose sanctions on Iran, effectively scuttling the deal.

"We are ready to talk to all the companies concerned about what we can do to minimize the negative consequences", he told Deutschlandfunk radio, according to Reuters.

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Each company and bank will have to decide whether to risk being cut off from the USA financial system. That means that anyone, in any country, who does business with Seif or Tarzali could themselves be punished with sanctions, cutting them off from the USA financial system.

"I would like our debate to reconfirm without any doubt that as long as Iran respects the provisions of the deal, the European Union will also respect it", Tusk said in a letter to the leaders on the eve of the summit.

He has helped guide Iran's economy through the web of previous sanctions placed on that country.

Germany, France and Britain were three of the six signatories to the 2015 pact which saw sanctions lifted in return for the commitment by Tehran not to acquire nuclear weapons. "It's clear that there should also be economic incentives - that will not be easy after the US decision", Maas said. US officials were reaching out Tuesday to central banks in other countries in the Middle East and Europe to inform them of the sanctions and encourage them to immediately freeze assets the bank has overseas. In a globalised world, sanctions can have long tentacles. No amount of "tough" posturing would cow it into easy defeat, and even if President Trump were to initially pursue a telegenic war from afar (missile strikes and sorties over a ground invasion), the potential for escalation is serious given Iran's ability to retaliate asymmetrically against American troops, allies, and economic interests in the region.

The statement was sharply critical of President Donald Trump, calling his administration "extremist" and the USA withdrawal from the accord "unlawful".

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