Germany warns U.S. sanctions on Iran could 'boost radical forces'

Germany warns U.S. sanctions on Iran could 'boost radical forces'

Germany warns U.S. sanctions on Iran could 'boost radical forces'

"We still think that it is a mistake to give up on the nuclear accord with Iran", Maas said in an interview with the daily Passauer Neue Presse. Donald Trump claimed they were "the most biting ever imposed" and warned that in November, sanctions would "ratchet up to yet another level" with an embargo on Iranian oil and blanket sanctions on Iranian banks.

The first wave of USA sanctions targeting Iran's automotive sector as well as gold, steel, and other metals went into effect Tuesday.

The sanctions go back into place after Trump in July threatened Iranian President Hassan Rouhani.

"Today, America is identified as an unreliable and untrustworthy country in the world which does not adhere to any of its obligations", Rouhani said. But that has proved hard: European companies have quit Iran, arguing that they can not risk their US business.

Among large European companies that have suspended plans to invest in Iran are France's oil major Total and its big carmakers, PSA and Renault. The Iranian president added that "the greatest capital that any country has is trust and credibility".

Turkey, however, said it would continue to buy natural gas from Iran.

The chief executive of reinsurance group Munich Re said it may abandon its Iran business under pressure from the United States, but described the operation as very small.

Speaking to state broadcaster IRINN on Wednesday, Rouhani said: "If the Americans want to keep this simplistic and impossible idea in their minds, they should also know its consequences".

The Iranian rial fell to a record low late last month, dropping in value by half since April, leading to sharp price increases and fast-rising inflation.

For its part, Doa'at al-Islam Shiite militia said in a statement on Wednesday that the actions of imposing unilateral sanctions on Iran by the United States and its president Donald Trump was a violation of all human values and worldwide norms.

Iranian President Hassan Rouhani has vowed that Iran will stand firm against threats by the United States over oil shipments, after Washington reimposed economic sanctions on the Islamic republic.

Already facing broad economic fallout as their currency implodes, Iranians are wondering how the next phase of the crisis in U.S. relations will play out - and what, exactly, America's long-term strategy is toward their country.

Trump decided this year to pull out of the agreement, ignoring pleas from the other world powers that had co-sponsored the deal, including Washington's main European allies, Britain, France and Germany, as well as Russian Federation and China.

In a speech hours before the sanctions were due to take effect on Tuesday, Rouhani rejected negotiations as long as Washington was no longer complying with the deal.

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