Iran: US is waging 'psychological war' by withdrawing from nuclear pact

Iranian foreign minister has claimed the US is waging a "psychological war" against Iran and its economic partners, according to the local Tasnim news agency.

"[America's] focus is on a psychological war against Iran and its business partners," Foreign Minister Mohammed Javad Zarif said.

It comes after the US announced in May it was abandoning the 2015 nuclear deal and reimposing sanctions on Iran.

The other parties to the nuclear deal - the UK, France, Germany, China and Russia - have vowed to stay in the accord, but their companies risk huge financial penalties if they keep doing business in Iran.

President Donald Trump's decision to withdraw from the accord has hurt the US, Zarif said, according to the Iranian Students’ News Agency (ISNA).

"From the time that Trump announced the withdrawal from the nuclear deal, America has not been able to reach its goals," Zarif added.

The US reimposed a wave of tough unilateral sanctions against Iran on 7 August, bringing into effect penalties that had been lifted under the 2015 nuclear accord.

The first of two rounds of US sanctions targeted Iran's access to US banknotes.

Iranians have already seen the effects of the sanctions for months, with Iran's rial losing half its value since Trump announced in May the US would withdraw from the 2015 accord.

Trump has blasted the hard-fought agreement signed under his predecessor Barack Obama, calling it a "horrible, one-sided deal".

In an executive order, Trump said the sanctions seek to pile financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities.

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

Zarif also said the nuclear deal has led to political conflict within Iran.

"There are some in the country who, instead of laying the groundwork for using the opportunities presented by the nuclear deal, chose a political fight," Zarif said, according to ISNA. "And this political fight led to despair and disappointment."

The impact of the return of sanctions have ramped up political tensions inside Iran, which has seen days of protests and strikes in multiple towns and cities over water shortages, high prices and wider anger at the government.

Severe reporting restrictions have made it impossible to verify the swirl of claims coming through social media.

Trump has previously 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 program and its support for terrorism".

"If you're an enemy and you stab the other person with a knife, and then you say you want negotiations, then the first thing you have to do is remove the knife," the Iranian President Hasan Rouhani said in an interview on state television on 6 August.