A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005.
USA officials said they were determined to force Tehran to give up its nuclear activities and what the USA says is broad support for "terrorism" in the region, reimposing severe economic penalties six months after President Donald Trump's administration quit the 2015 Iran nuclear deal. The EU is creating a special mechanism that would circumvent US financial sanctions on Iran.
The U.S. oil drilling rig count declined this week for the first time in four weeks, with drillers cutting one oil rig in the week to November 2, bringing the total count down to 874, General Electric Co's Baker Hughes energy services firm said in a report on Friday.
Donald Trump, since breaking that deal in May, has vowed to cut off Iranian oil revenue completely, and oil exporters and tankers will be among 700 companies, individuals, vessels and aircraft that will be added to a U.S. sanctions blacklist on Monday.
Senior US officials have warned that Washington will next week reimpose all sanctions on Iran that were lifted by the Obama administration after the 2015 nuclear agreement.
"It is our aim to protect European economic operators engaged in legitimate business with Iran", they said.
"We call on the regime to abandon its nuclear ambitions, change its destructive behaviour, respect the rights of its people, and return in good faith to the negotiating table", President Trump said in a statement, adding, the USA "remains open to reaching a new, more comprehensive deal".
Meanwhile, the European Union, France, the United Kingdom and Germany - all signatories to the 2015 deal with Iran - have condemned the US move to renew its sanctions on Iran.More news: Pakistani Islamists block roads after Asia Bibi escapes execution
"We always stated that such sanctions could negatively impact peace, stability and economies in neighboring countries like Turkey, and we elaborated this reality during the talks with USA officials", he said in comments published by states news agency Anadolu. Meanwhile, there are supply disruptions in other key OPEC countries, including Venezuela and Angola.
Mnuchin says the US has informed SWIFT that it would be subject to USA sanctions if it provides financial transfer services to "certain designated Iranian financial institutions".
"Trump, his war cabinet, and regional cheerleaders in [Israeli Prime Minister] Benjamin Netanyahu and [Saudi Arabia's crown prince] Mohammed bin Salman do not have the Iranian or American people's best interests at heart", he continued.
Iran exported the equivalent of 2.5 million barrels a day in April, before the announcement of sanctions turned buyers away.
U.S. secretary of state Mike Pompeo said Friday that the USA would temporarily allow eight countries to continue buying Iranian oil even after enforcing its sanctions on Tehran. "We have the knowledge and the capability to manage the country's economic affairs", Iran's Foreign Ministry spokesman, Bahram Qasemi, told state television.
Secretary of State Mike Pompeo defended President Trump's plan to send troops to the southern border as a caravan of migrants makes its way across Mexico, dismissing criticism that the move is motivated by politics ahead of the midterm elections.
At a gathering on Saturday, Iran's supreme leader, Ayatollah Ali Khamenei, portrayed the sanctions as part of a long tradition of American hostility towards the Islamic Republic, which he said had nevertheless prevailed.