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Trump's withdrawal from the historic 2015 nuclear accord in May infuriated his European partners, as many European businesses operating in Iran could find themselves on the wrong side of the US sanctions.
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US President Donald Trump on Monday told Iran to change its "destabilizing" behavior or risk further economic isolation, hours before the reimposition of sweeping sanctions against Tehran, though he left the door open to a new nuclear deal.
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Iran's President Hassan Rouhani said Monday that Washington's call for new nuclear negotiations at the same time as it reimposes crippling sanctions "doesn't make sense" and is an attempt at "psychological warfare".
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Iran's Foreign Minister Mohammad Javad Zarif told reporters the global reaction to Trump's move showed that the US was diplomatically "isolated," but acknowledged the sanctions "may cause some disruption."
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That has ramped up tensions inside Iran, which has seen days of protests and strikes in multiple towns and cities over water shortages, high prices and wider anger at the political system.
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Iran's currency has lost around half its value since Trump announced the US would withdraw from the nuclear pact.
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Sanctions are due to return in two phases on August 7 and November 5 -- with the first targeting Iran's access to US banknotes and key industries including cars and carpets.
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Many large European firms are leaving Iran for fear of US penalties, and Trump warned of "severe consequences" against firms and individuals that continued to do business with Iran.
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Already facing broad economic fallout as their currency implodes, Iranians are wondering how the next phase of the crisis in US relations will play out -- and what, exactly, America's long-term strategy is toward their country.