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The United States re-imposed tough, unilateral sanctions against Iran on Tuesday, bringing back into effect tough penalties that had been lifted under a historic, multi-party nuclear agreement that President Donald Trump abandoned in May.

US President Donald Trump said that sanctions reimposed on Iran were most biting ever.

The second phase of United States sanctions, which takes effect on 5 November and will block Iran's oil sales, is due to cause more damage, but several countries including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.

European businesses that pull out of Iran because of U.S. sanctions may end up being sued by EU states.

Mr Trump said he was open to reaching a more comprehensive deal with Iran "that addresses the full range of the regime's malign activities, including its ballistic missile programme and its support for terrorism".

"We deeply regret the re-imposition of sanctions by the U.S", the European Union said in a statement.

"It is a commercial decision for companies whether they continue to work in Iran".

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They have been delighted by the scattered protests that have already emerged as the Iranian economy crumbles, and will risk more in the hope of greater gains.

He added that "as far as I can see" Iran would not surrender.

The US sees the sanctions "as a tool to pressure Iran to come back to the negotiating table to rehash the nuclear deal on terms more to Trump's liking".

"If the ayatollahs want to get out from under the squeeze, they should come and sit down".

He said that the sanctions will be "fully enforced" in an "aggressive manner", including countries and companies dealing with Iran.

Money exchange shops across Iran cautiously reopened on Tuesday after being shut for five months amid economic turmoil fanned by America's withdraw from the nuclear deal.

As of midnight, harsh sanctions on Iran have kicked in as part of the administration's strategy to keep Tehran from achieving its goal of building a nuclear bomb.

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"Prices have been increasing for three or four months and everything we need has become so expensive, even before sanctions returned", said Yasaman, a 31-year-old photographer in Tehran.

The ministers said the Iran deal is "crucial for the security of Europe, the region and the entire world", and the European Union issued a "blocking statute" Monday to protect European businesses from the impact of the sanctions.

The threat of sanctions has already weakened Iran's hand, one official said.

US trade with Iran stood at $258 million (Dh948m) in 2016, according to the US Census Bureau, while exports to Iran from the European Union, which will be affected by secondary sanctions, were worth $13 billion past year.

The US has long designated Iran as the world's foremost state sponsor of terrorism, Pompeo noted Sunday, adding that the Islamic Republic can not expect to be treated as an equal in the worldwide community until it halts such activities.

Israeli Prime Minister Benjamin Netanyahu, like Trump a long-time opponent of the accord, congratulated him on the new sanctions.

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