Both President Trump and Iranian officials have shown interest in negotiations. Ayatollah Ali Khamenei called the idea unwise, but stopped short of ordering his government not to engage.

Ayatollah Ali Khamenei also suggested that “there should be no negotiations with such a government,” but stopped short of issuing a direct order not to engage with Washington.

According to the state department, the sanctions target a network that is bringing “illicit revenue to the Iranian military” through a front company, Sepehr Energy. Also included are a shadow tanker fleet and management companies that facilitate the supply of oil to China,

Iran on Friday condemned as "illegal" and "unjustified" new financial sanctions by the US that target a network accused of shipping Iranian crude oil to China.