President Trump has issued an executive order reinstating sweeping sanctions on Iran at midnight on Tuesday … months after dropping out of the Iran nuclear deal. The sanctions are intended to put pressure on the Iranian economy by shutting down Tehran's ability to do business in U.S. dollars and targeting areas like Iran's shipping and oil sectors. The move follows the administration's decision in May to withdraw from the nuclear deal negotiated between Iran and world powers including the Obama administration. TRUMP SOT "The Iran deal is defective at its core." International sanctions on Iran were lifted under the deal… in exchange for curbs on Iran's pursuit of nuclear arms. Trump's decision has opened a new rift with U.S. allies in Europe, who are trying to salvage the nuclear deal and oppose new sanctions.

The EU telling companies there not to comply with the U.S. demand to stop doing business with Iran.

The executive order zeroes in on Iran's critical petroleum industry… for example punishing individuals who knowingly engage in, quote "a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran." But even as the administration ramps up the economic pressure… it's also dangling the carrot of possible talks… with officials telling Reuters Trump is ready to meet with Iranian leaders at "any time" to negotiate a new nuclear deal.

Iranian President Hassan Rouhani dismissing the suggestion of talks with the U.S. on Monday, saying they could only take place if Washington proved it was trustworthy.

Some of the new sanctions will go into effect at midnight on August 7th… with the rest kicking in on November 5th…