He reimposed USA sanctions that had been suspended in return for controls on Tehran's nuclear programme, effectively barring many multinational firms from doing business in Iran.
US officials had long known of Iran's pre-2004 nuclear weapons research, which the Obama administration cited explicitly in prodding Iran to accept the historic deal limiting its ability to make enriched uranium and placing its nuclear facilities under intensive global oversight.
"We are granting the EIB the capacity to invest in Iran if suitable projects are found", said Siegfried Muresan, a lawmaker from the center-right European People's Party.
"It is imperative to counter its habit of violating global law", Zarif added.
"We are, of course, continuing to carry out and implement our obligations", a spokesman for Iran's Atomic Energy Organization, Behrouz Kamalvandi, told reporters in Tehran, Iran.
Mnuchin said Washington had made clear to allies that it expects them to enforce the sanctions against Iran "but if there are specific situations we're open to listening".
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Instead, according to the diplomats, Pompeo and Mnuchin wrote that the USA wanted to create "unprecedented financial pressure" until Iran makes a "tangible, demonstrable and sustained shift" in policies.
Zarif addressed world diplomats and Iranian businessmen at a lavish Tehran hotel on Monday night, in a meeting designed as a show of continued mutual support in the face of the USA move.
Pompeo said the goal is to deny Iran resources to support terrorism and continue its aggressive behavior around the world.
"This administration in the United States doesn't know how to behave towards the world... it breaks global treaties as a tool".
The Trump administration signaled for the first time it might consider exemptions from United States sanctions for countries as they reduce their dependency on Iranian oil.
The EU fears that billions of dollars' worth of trade could be jeopardized as a result of Washington's new sanctions.
This comes as the Treasury Department is set to slap two rounds of sanctions on the Islamic republic, while the country is mired in a wave of domestic civil unrest. Bolton said the USA was looking for Iran's "unconditional surrender" in meeting demands on Iran made by Pompeo during a speech in late May. U.S. sanctions against Iran are likely to be raised in his talks.