Iran's Rouhani says US has failed to undermine nuclear deal

France's Foreign Minister Jean Yves Le Drian and European Union's foreign policy chief Federica Mogherini attend a meeting with Iran's Foreign Minister Mohammad Javad Zarif Britain's Foreign Secretary Boris Johnson and Germany's Foreign Minister Sigmar G

France's Foreign Minister Jean Yves Le Drian and European Union's foreign policy chief Federica Mogherini attend a meeting with Iran's Foreign Minister Mohammad Javad Zarif Britain's Foreign Secretary Boris Johnson and Germany's Foreign Minister Sigmar G

"Trump, despite his repeated efforts, has failed to undermine the accord", Rouhani said in his speech, according to a report from the Reuters news agency. But he said he would work with European allies to remove so-called "sunset clauses" that allow Iran to gradually resume advanced nuclear activities in the next decade.

The EU said in a statement it had taken note of Trump's decision and would assess its implications.

These penalties largely cut Iran out of the global financial system, until they were suspended by Obama under the nuclear deal.

The Foreign Ministers of Britain, France and Germany threw their weight behind the pact limiting Iran's nuclear ambitions and insisted that the Islamic Republic is respecting it.

The most prominent new name on the Treasury sanctions blacklist, which forbids Americans from doing business with the targets, is the head of Iran's judiciary, Sadegh Amoli Larijani.

"Despite my strong inclination, I have not yet withdrawn the United States from the Iran nuclear deal", Trump said in a statement, saying the options were to fix "the deal's disastrous flaws, or the United States will withdraw".

The other signatories to the deal - Britain, China, France, Germany and Russian Federation - and the European Union, which oversaw the talks, were watching carefully.

He said he was waiving the sanctions for the last time in order to give Congress and European allies 120 days to improve the agreement or face USA abandonment of the pact. Trump is also waiving other USA penalties covered by the agreement, including on Iran's oil and gas sectors, which were up for renewal next week.

The president's proposals to "fix the deal's disastrous flaws" include Iran's agreement to open all sites immediately to global inspectors and an assurance from Tehran that it will never develop a nuclear weapon.

Trump extended the waivers of key sanctions that were lifted as part of the Obama-era agreement Friday, but he said it was the last time. Nevertheless, many other restrictions, for instance over Iranian ballistic missiles, remained in place.

He did not set a deadline, but under US law the president is required to waive sanctions every four months.

The 2015 nuclear accord, reached after months of painstaking negotiations with the U.S., Britain, France, Germany, China and Russian Federation, lifted worldwide sanctions in exchange for Iran limiting its nuclear program.

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