Higher Gas Prices Could Follow Trump's Exit From The Iran Deal

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British Prime Minister Theresa May and U.S. President Donald Trump agreed in a phone call on Friday that talks were needed to discuss how U.S sanctions on Iran would affect foreign companies operating in the country.

When pressed by CNN on whether the Trump administration would sanction European firms that continue to do business with Iran, Bolton said, "I think the Europeans will see that it's in their interest ultimately to come along with us".

The French and German governments stressed the need for political independence from the White House as they took steps to safeguard the agreement which lifted economic sanctions against Iran in exchange for limits on the country's nuclear programme.

The EU's so-called blocking statute is the most powerful tool at its immediate disposal because it bans any EU company from complying with USA sanctions and does not recognise any court rulings that enforce American penalties. "Europeans are going to face the effective United States sanctions, already are really, because much of what they would like to sell to Iran involves USA technology, for which the licenses will not be available".

Iran has claimed its nuclear program is for civilian purposes and denies supporting extremists in the region.

"We are not interested in the atomic bomb, but we are increasing our missile capabilities in other fields so that Israel can not sleep well", he was quoted as saying by semi-official ISNA News Agency. "Indeed, I would argue that they thought they could act with impunity", he said.

Trump's decision to exit nuclear deal amplifies widespread anger in Iran
Iranian Foreign Minister Javad Zarif sets off on Saturday for talks in China, Russia and Europe to see what can be salvaged. Responding to a question, Bolton said that the leadership of the previous Obama administration lied to the American people.

Earlier on Sunday, Iranian President Hassan Rouhani said Iran would remain committed to the deal "if the remaining five countries abide by the agreement".

Trump described the deal as "horrible" and "one-sided" as he announced USA withdrawal on Tuesday, which could lead to penalties for European businesses that have begun trading with Iran since it was signed in 2013.

The deal is set to expire at the end of 2018, but the Bank of America analysts said that OPEC and Russian Federation are likely to continue working together to prevent prices from falling. Zanganeh said foreign investment was needed to develop Iran's its oil industry, but that it could survive even if foreigners made a decision to stay away for fear of USA penalties. As that view hinges on Opec reviving output and a limited impact on Iran from USA sanctions, prices could go even higher, it said, becoming the first Wall Street bank to suggest a return to $100. Military tensions between Iran and Israel have already mounted, and oil prices are rising on the uncertainty.

In the wake of new US sanctions, some buyers of OPEC's third-largest oil producer said on Wednesday they would seek USA exemptions to purchase Iranian crude.

The statement said "the Iranian regime's reckless actions pose a severe threat to regional peace and security". "That is what we have done and that is what we will continue doing", Netanyahu said.

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