Trump told reporters the sanctions were in part a response to last week's downing of a usa drone by Iran, but would have happened regardless.
"We're in a very strong position", Trump told Fox Business Network when asked if a war was on the helms. "The U.S. has not forgotten Iran's use of IED's & EFP's (bombs), which killed 2000 Americans, and wounded many more", President Trump added.
Iran's Foreign Ministry spokesman says the new USA sanctions targeting the Islamic Republic's supreme leader and other top officials mean the "permanent closure" of diplomacy between Tehran and Washington.
U.S. President Donald Trump speaks after signing an executive order imposing new sanctions on Iran in the Oval Office at the White House on June 24, 2019 in Washington, DC.
"The fruitless sanctions on Iran's leadership and the chief of Iranian diplomacy mean the permanent closure of the road of diplomacy with the frustrated USA administration", the Islamic Republic News Agency quoted Iranian Ministry of Foreign Affairs spokesman Abbas Mousavi as saying.
Iran's supreme leader says Iranians will not budge or change their stance following the new USA sanctions targeting Ayatollah Ali Khamenei and his associates.
US Secretary of State Mike Pompeo is in the Middle East to discuss Iran with the leaders of Saudi Arabia and the United Arab Emirates, two Sunni Muslim allies aligned against Shi'ite Muslim Iran.
This comes after President Trump was met with ridicule after accidentally putting sanctions on Ayatollah Khomeini, who has been dead for 30 years, rather than current Iranian leader Ali Khameini.
"You say you really want to hold talks with us, but at the same time, you're saying that you want to boycott and sanction our foreign minister, so you're lying", Rouhani said.
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Although the United States and Iran both say they do not want war, last week's aborted USA strikes have been followed by menacing rhetoric on both sides.
They came amid heightened tensions between Iran and the United States over Tehran's unravelling nuclear deal with world powers.
Still, on Tuesday, Trump said he was not seeking conflict while warning Iran against hitting U.S. interests.
The statement comes one day after it was reported that the USA launched a sweeping cyberattack against the Iranian military last week in direct response to Iran's downing of an American surveillance drone.
Iranian military leaders have continued to threaten USA ships and military assets in the Persian Gulf.
The ambassador said "all options", including a military strike, "remain on the table" if Iran blows through those limits.
President Trump announced the sanctions on Monday.
US officials say new sanctions are necessary to force Iran back to the negotiating table, and Trump is open to talks without pre-conditions.
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