Iran's Khamenei bans holding direct talks with United States

Donald Trump Germany trade war

Donald Trump has been accused by Peter Altmaier of destroying the German economy

"We have been in wars but the other side has always started the war".

While E.U. nations have pledged to try to preserve economic ties with Iran, most large European companies already concede they will sacrifice trade with Iran, rather than risk suffering from secondary sanctions.

"This trade war is slowing down and destroying economic growth - and it creates new uncertainties", Altmaier told Bild am Sonntag newspaper, adding that consumers suffered the most because higher tariffs were driving up prices.

The rial currency has lost about half of its value since April under the threat of revived USA sanctions, with heavy demand for dollars among ordinary Iranians trying to protect their savings.

"America's withdrawal from the nuclear deal is a clear proof America can not be trusted".

U.S. President Donald Trump last week reimposed a set of sanctions that had been lifted as part of the 2015 nuclear deal Iran struck with world powers to limit the country's nuclear program in exchange for relief from measures that had badly hurt its economy.

The sanctions target Iran's trade in gold and other precious metals, its purchases of USA dollars and its auto industry.

The Leader added as Imam Khomeini "banned talks with the USA and I also ban it".

Washington had previously stated Iran's only chance to avoid sanctions would be to accept Mr Trump's offer to re-negotiate a tighter nuclear deal.

Khamenei went on to rule out the possibility of armed conflict with the United States, saying that "war will not happen", according to the AP.

The Supreme Leader criticised Mr Rouhani's government after a sharp fall in the Rial currency prompted angry protests from citizens.

Thousands of Iranians have protested in recent weeks against sharp rises in the prices of some food items, a lack of jobs and state corruption. "I do not call it betrayal but a huge mistake in management", state TV quoted Khamenei as saying.

Khamenei said Monday that the monetary crisis resulted from "management problems unrelated to sanctions" and blamed the administration of Iranian President Hassan Rouhani, the news service added.

The rial has lost about half of its value since April in anticipation of the renewed USA sanctions. The protests over the cost of living have often turned into anti-government rallies.

"The corrupt people [officials] should be punished firmly", Khamenei said on Monday.

Meanwhile, Iran on Monday unveiled a next generation short-range ballistic missile.

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