LONDON/JERUSALEM (Reuters) - Iran warned on Wednesday it would hit U.S. and Israeli targets if it were attacked by the United States after President Donald Trump's security adviser said Washington would exert maximum pressure on Tehran going beyond economic sanctions.
A U.S.-Iranian war of words has escalated since Trump withdrew Washington from the world powers' nuclear deal with Iran in May, blasting it as flawed and reimposing sanctions to choke Iran's economy and force it to renegotiate or change direction.
The U.S. turnaround, which scrapped a wary detente between Iran and the United States after decades of hostility, has drawn defiance from Tehran despite renewed unrest over economic privations, and has unnerved other big powers where businesses have been debating whether to divest from Iran.
U.S. National Security Adviser John Bolton told Reuters the return of U.S. sanctions was having a strong effect on Iran's economy and popular opinion.
"There should not be any doubt that the United States wants this resolved peacefully, but we are fully prepared for any contingency that Iran creates," Bolton said during a visit to Israel, Iran's enemy in the Middle East.
U.S. sanctions dusted off this month targeted Iran's car industry, trade in gold and other precious metals, and purchases of U.S. dollars crucial to international financing and investment and trade relations. Farther-reaching sanctions are to follow in November on Iran's banking sector and oil exports.
European powers have been scrambling to ensure Iran secures enough economic benefits to persuade it to stay in the deal. This has proven difficult, with many European firms keen to avoid financial penalties by the Trump administration.
"We expect that Europeans will see, as businesses all over Europe are seeing, that the choice between doing business with Iran or doing business with the United States is very clear to them," Bolton said. READ MORE
