The UK and EU’s joint policy towards Iran may be putting them on a collision course with the US. Mr Pompeo warned Washington won’t hesitate to issue sanctions against British and European companies if they continue trying to do business with Iran. He said: “If the transaction is sanctionable there will be sanctions against those involved in that transaction.” 

The only trade allowed by the US right now between Iran and the world concerns humanitarian supplies.

Tim Morrison, special assistant to the US President and senior director for weapons of mass destruction, took the warning a step further, branding helping Iran a “poor business decision”.

He said: “If you are a bank, an investor, an insurer or other business in Europe, you should know that getting involved in the special purpose vehicle is a very poor business decision.” 

The “special purpose vehicle” is a mean devised to help Iranian companies do some trade outside their country’s borders in a way that circumnavigates the sanctions, described by the European Union External Action’s website as “a legal entity to facilitate legitimate financial transactions with Iran”.

Washington imposed new sanctions yesterday against Tehran, now in recession, targeting revenue from Iran’s exports of industrial metals.

Mr Trump warned this new set of sanctions is just a first step, which may be followed by more actions unless Iran “fundamentally alters its conduct.”

The move came after Iran’s President Hassan Rouhani announced his country will no longer abide by some of the terms agreed on the Iran nuclear deal in 2015 to protest against Mr Trump’s decision to pull out from the agreement. 

And, despite this decision breaches the terms of the agreement, Mr Rouhani urged Iran’s European allies to find ways to help Tehran to “reap our benefits” for remaining in the deal.

Jeremy Hunt called Iran’s decision to relax restrictions on its nuclear activities “unwelcome” as he urged against starting again its nuclear enrichment programme.

He said during a joint press conference with Mr Pompeo: “I urge Iran not to take further escalatory steps and to stand by its commitments. 

“Sanctions were lifted in exchange for restrictions on Iran’s nuclear programme.

“Should Iran cease to observe its nuclear commitments there would of course be consequences.

“For as long as Iran keeps its commitments, then so too will the United Kingdom.”   

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