US offers to work with Europe on new Iran deal, holds out sanctions threat

The United States' top diplomat said Washington still wants to work with Europe to counter Iran's "malign behaviour" as President Donald Trump called his withdrawal from the landmark nuclear deal key to containing Tehran.

But while Secretary of State Mike Pompeo talked up the prospect of renewed coordination with America's allies, another top aide reminded Europe its companies could face sanctions if they continue to do business with the Middle Eastern power.

The development came as Iran's foreign minister said he was hopeful of forging a "clear future design" for the pact, while speaking in Beijing at the start of a diplomatic tour aimed at rescuing it.

Trump's announcement last Tuesday that the US was exiting the 2015 nuclear accord was met with widespread dismay among its other signatories -- China, Russia, France, the Britain and Germany.

But Secretary of State Mike Pompeo said Washington was keen to thrash out a more wide-ranging deal with its European partners.

Pompeo, who is barely a fortnight into his new job, told Fox News Sunday that he had been tasked by the president "to work to strike a deal that achieves the outcomes that protect America." "That's what we are going to do and I will be hard at it with the Europeans in the next several days," said the top US diplomat.

"I'm hopeful in the days and weeks ahead we can come up with a deal that really works, that really protects the world from Iranian bad behavior, not just their nuclear program, but their missiles and their malign behavior as well.

The administration says the lifting of sanctions as part of the nuclear pact had allowed Iran to build up its military.

Trump weighed in later Sunday, saying his decision would limit Iran's regional ambitions.

"Remember how badly Iran was behaving with the Iran Deal in place," he tweeting. "They were trying to take over the Middle East by whatever means necessary. Now, that will not happen!" With Pompeo seemingly assuming the "good cop" role on behalf of the Trump administration, it was left to newly appointed US national security advisor John Bolton to remind Europe its firms could be punished if they didn't adhere to American measures.

"It's possible," Bolton said on CNN when asked about the prospect of sanctions. "It depends on the conduct of other governments." "The consequences of American sanctions go way beyond goods shipped by American companies because of our technology licenses to many other countries and businesses around the world. As those sanctions kick in, it will have an even broader effect as well," he said.

"I think the Europeans will see that it's in their interest, ultimately, to come along with us."