US mulling more sanctions targeting Iran's economy

The new sanctions would be imposed around the first anniversary of the US withdrawal from the historic nuclear deal in May, the source suggested.

"We just want a continued chilling effect," the official said. "We want businesses to continue to think doing business with Iran is a terrible idea at this point."

Washington has stepped up economic pressure on Iran since President Trump decided to withdraw last year from the 2015 agreement to freeze the country's development of nuclear weapons, saying Tehran was "not living up to the spirit of the deal".

Central Intelligence Agency (CIA) Director Gina Haspel told Congress in January that Iran continued to comply with the terms of the deal.

Last week, the US Treasury took fresh aim at the international network funnelling dollars and euros to Iran's Islamic Revolutionary Guard Corps (IRGC), naming 25 individuals and entities for financial sanctions.

The targets were front companies of the IRGC-controlled Ansar Bank and Ansar Exchange in Iran, Turkey and the UAE, that have collectively been able to move more than $1 billion for the Tehran regime, the Treasury said.

The funds have benefitted both the IRGC and the Ministry of Defence and Armed Forces Logistics, according to a Treasury announcement.

Officials said the new sanctions were in part based on Israel's recovery of a "secret archive" of documents from Iran that alleges Iran deliberately preserved and stored its early nuclear weapons work - known as the "Amad plan" - with the intent to someday resume the work.

Tuesday's remarks came just a day after Iranian Foreign Minister Javad Zarif accused the US of impeding aid efforts and "economic terrorism" on Monday, as authorities ordered the immediate evacuation of flood-stricken cities in western Iran.

US sanctions are "impeding aid efforts by #IranianRedcrescent to all communities devastated by unprecedented floods", Zarif tweeted, referring to search and rescue operations being conducted after huge rainfalls triggered vast flooding.

"Blocked equipment includes relief choppers," the tweet read, adding that "this isn't just economic warfare; it's economic TERRORISM".

Washington pulled out of the agreement last year, saying it was fatally flawed, and re-imposed crippling US sanctions that were previously eased under the terms of the deal. The Trump administration continues to impose sanctions as part a pressure campaign to force Iran to renegotiate the agreement.

European nations still back the accord and have been finding ways around US sanctions in order to preserve the deal.

Iran has pledged not to resume its nuclear programme following the collapse of a landmark 2015 deal with the US. The UN's atomic watchdog says Iran continues to comply with the agreement.

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