Iranians mark embassy takeover on eve of U.S. sanctions

Iranian Revolutionary Guards commander Major General Mohammad Ali Jafari speaks during a demonstration outside the former US embassy in the Iranian capital Tehran

Iran's president has said his country will "proudly bypass" Donald Trump's "illegal" and "unjust" sanctions by selling oil.

Iranian President Hassan Rouhani said on Monday that Iran will sell its oil and break sanctions reimposed by the United States on its vital energy and banking sectors.

"But an alternative sourcing strategy needs to be worked out soon as the United States relaxation would be temporary and Washington would expect India to keep cutting imports from Iran to reach zero level", said an energy sector expert.

The US began re-imposing sanctions on Tehran after President Donald Trump withdrew the country from the Joint Comprehensive Plan of Action (JCPOA) on the Iranian nuclear program in May, branding the deal "defective at its core".

To keep the deal alive, the remaining parties to the Iran nuclear deal are trying to maintain trade with Tehran despite scepticism this is possible despite USA sanctions to choke off Iranian oil sales.

Iran's supreme leader Ayatollah Ali Khamenei said Saturday that President Donald Trump has "disgraced" USA prestige and would be the ultimate loser from renewing sanctions on the Islamic republic.

"I announce that we will proudly bypass your illegal, unjust sanctions because it's against worldwide regulations", Rouhani said in a televised speech.

The impact of the sanctions was felt early on, with their announcement in May driving many companies to abandon Iran, causing the value of its currency to plummet.

The US said the sanctions are not aimed at toppling the government, but at persuading it to radically change its policies, including its support for regional militant groups and its development of long-range ballistic missiles.

The US expects to have reduced Iranian oil exports by more than 1 million barrels even before Monday's tranche of economic penalties, which the US has long warned were incoming.

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"We have also seen the decline of the rial".

"Iran is a much different country than it was when I took office", said Trump.

Mr Rouhani, meanwhile, pledged to government officials in comments aired on state television that Iran would overcome the sanctions.

"We are in the war situation", Rouhani said. "And we're going to provide that to them".

"All eyes will be on the outcome of negotiations on possible waivers to US sanctions on Iran".

All of that said, as Pompeo noted on Friday, the waivers are not full waivers.

Another demonstrator Sunday, Jamshid Zarei, waved a banner in English quoting Iran's Supreme Leader Ayatollah Ali Khamenei saying: "America can't do a damn thing".

Washington had said it will ensure a well-supplied global oil market, with help from ally Saudi Arabia, as Iran oil is cut back.

Hours before the fresh sanctions went ahead, thousands of people in Iran marked the anniversary of the 1979 hostage-taking at the U.S. embassy by carrying placards mocking Trump and burning American flags and fake dollars.

"America has launched an economic and psychological war as a last resort".

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