Prime Minister Benjamin Netanyahu on Monday praised U.S. President Donald Trump's decision to reimpose sanctions on Iran and called on European states "to join the move."
However, the European Union vowed to counter the renewal of sanctions on Iran, in a test of the EU's ability to preserve the 2015 international nuclear deal that aimed to have Iran limit its nuclear project in exchange for removing strict curbs on its economy.
As Washington's so-called "snapback" sanctions were reinstated Tuesday, a new EU law designed to shield European companies from U.S. sanctions also went into effect to try to mitigate what EU officials say is their "unlawful" reach beyond U.S. borders.
Despite protests from European allies, U.S. Secretary of State Mike Pompeo said Washington would fully enforce the sanctions.
Washington has said the only way Iran could avert the sanctions would be to agree to new negotiations, in which it would be required to abandon its missile and nuclear programs.
In a televised address, Iranian President Hassan Rouhani said there could be no talks as long as the U.S. reneges on the 2015 agreement struck between Iran and six world powers led by former U.S. President Barack Obama.
"If you stab someone with a knife and then you say you want talks, then the first thing you have to do is remove the knife," Rouhani said.
"We are always in favor of diplomacy and talks. … But talks need honesty. Trump's call for direct talks is only for domestic consumption in America ahead of elections … and to create chaos in Iran.
"America will regret imposing sanctions on Iran. … They're already isolated in the world. They are imposing sanctions on Iranian children, patients, and the nation," he said.
Iranian Foreign Minister Mohammad Javad Zarif reiterated that Trump and his allies in the Middle East have become isolated by their hostile policies towards Tehran, Iranian state TV reported this week.
The prospect of sanctions has already hurt Iran's economy, with the rial currency falling and the government cracking down on protests.
Rouhani called on Iranians to unite in the face of hardship.
"There will be pressure because of sanctions but we will overcome this with unity," he said.
Last month, Trump said that he would be willing to meet Rouhani "anytime" without preconditions to discuss how to improve relations.
Senior Iranian officials and military commanders have rejected the offer of talks as worthless and "a dream," saying his words contradicted his action of reimposing sanctions.
White House National Security Adviser John Bolton on Monday urged Iran to take up the offer of talks with the United States or suffer more pain from economic sanctions.
Bolton said Iran should pay heed to Trump's willingness to negotiate.
"They could take up the president's offer to negotiate with them, to give up their ballistic missile and nuclear weapons programs fully and really verifiably," Bolton told Fox News.
"If the ayatollahs want to get out from under the squeeze, they should come and sit down. The pressure will not relent while the negotiations go on," said Bolton, one of the administration's main hawks on Iran.
The snapback sanctions target Iranian purchases of U.S. dollars, metals trading, coal, industrial software and its auto sector.
Trump plans to reintroduce more damaging sanctions on Iranian oil in November and wants as many countries as possible to cut their imports of Iranian oil to zero.
But the U.S. sanctions strategy has several weaknesses, especially a reluctance by Europe and China to curtail business with Iran.
On Monday, Trump warned anyone failing to wind down economic activities with Iran of "severe consequences."
"The United States is fully committed to enforcing all of our sanctions, and we will work closely with nations conducting business with Iran to ensure complete compliance," he said in a statement.
Iran's net official reserves are projected to decline this year to $97.8 billion, enough to finance about 13 months of imports, the International Monetary Fund estimated in March.
Fear of sanctions and economic hardships have led to sporadic protests in several Iranian cities in recent days, with ordinary Iranians chanting slogans against the country's leaders.
