Iran inked the nuclear agreement deal with the US, China, Russia, France, Germany and the UK and is required to severely curb its nuclear activities in return for global sanctions relief.
At a speech to the United Nations General Assembly this week, US President Donald Trump described the deal as an "embarrassment". He later told reporters that he had decided what to do about the agreement but would not reveal what he had decided.
Tillerson, who met Iranian Foreign Minister Mohammad Javad Zarif here on sidelines of the UNGA meet, said, "We clearly have significant issues with the agreement."
"The President has been quite clear and articulate as to his concerns about the agreement itself, the thoroughness of the agreement, the enforcement of the agreement," he told reporters.
Tillerson said while Iran has been in "technical compliance" with the nuclear deal, the aspirations of the agreement have not been met.
He said since the deal was struck Iran has continued to "prop up" the Assad regime and its "horrible way" in which it has brought violence to its own people and accused it of continuing to engage in "malicious" cyber activity.
Iran has aggressively developed and tested ballistic missiles in defiance of the UN Security Council Resolution 2231, thereby threatening the security of the US and the stability of the region, he said.
He also accused Iran of carrying out "provocative operations" in the Gulf itself against US naval and coalition vessels when they try to "peacefully" transit the region, "threatening the very freedom of navigation through this very important waterway."
"So, I think it's pretty difficult to say that the expectations of the parties who negotiated this agreement have been met. Perhaps the technical aspects have, but in the broader context the aspiration has not," Tillerson said, adding recently the US has taken action to counter those activities.
"We are going to continue to monitor Iran's activities and we will take additional steps, none of which put us in any way contrary to our obligations under the Joint Comprehensive Plan of Action (JCPOA). We are fully compliant with the JCPOA.
"The activities we are sanctioning Iran for carrying out are not covered under the technical agreement, the JCPOA itself," he said.
According to the top American diplomat, the agreement has a very concerning shortcoming that the President has mentioned as well, and that is the "sunset clause", where one can almost set the countdown clock to when Iran can resume its nuclear weapons programmes, its nuclear activities.
"When we look at the history of North Korea's weapons development programme, in many senses we've seen this before
agreements that just simply pushed it to another government, another administration, to deal with," he said.
Tillerson said President Trump has made it clear he does not intend to do that in this case.
"He takes his responsibility in this particular matter quite seriously and that is the reason he is very, very carefully considering the decision of whether we find the JCPOA to continue to serve the security interests of the American people or not.
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