Trump administration announces toughest sanctions against Iran

The Trump administration on Friday announced a new round of sanctions against Iran that will have a further noticeable effect on the everyday life of its ordinary citizens.

"Highest sanctions ever imposed on a country," President Donald Trump said during brief remarks at the Oval Office, as he hosted Australian Prime Minister Scott Morrison and his wife for a state visit.

The sanctions targeted the Iranian national bank, further escalating economic pressure on the country as a potential strike in retaliation for recent attacks on Saudi Arabian oil fields, The New York Times reported.

The development came after Iranian Foreign Minister Mohammad Javad Zarif on Thursday said a military strike against Iran by the United States or Saudi Arabia would result in "an all-out war".

In an exclusive interview to CNN, Zarif said Iran hoped to avoid conflict and the country was willing to talk to its regional rivals Saudi Arabia and the United Arab Emirates.

The US and Saudi Arabia have blamed Iran for providing artillery to Yemen's Houthi rebels who had claimed responsibility for the drone attacks on Saudi oil facilities that hit nearly 50 per cent of the Kingdom's global crude oil supply, despite repeated denial by Tehran.