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The United States has ratcheted up pressure on Iran, putting sanctions on 13 individuals and 12 entities days after the White House put Tehran "on notice" over a ballistic missile test.
The move against Iran is the first by the US Government since President Donald Trump took office on January 20 after vowing during his 2016 campaign to get tough on Tehran.
Under the sanctions, those involved cannot access the US financial system or deal with US companies.
They are also subject to "secondary sanctions," which means foreign companies and individuals are prohibited from dealing with them, or risk being blacklisted by the United States.
The measures are similar to actions previously taken by the Obama administration targeting Iran's ballistic missile network, but senior Trump administration officials said the action was just the opening shot in plans to go after Tehran.
A senior US administration official said the sanctions were an "initial step" in response to Iran's "provocative behaviour", suggesting more could follow if Tehran does not curb its ballistic missile program and continues support for Houthi militia in Yemen.
Iran denounced the new sanctions as "illegal" and said it would impose legal restrictions on American individuals and entities helping "regional terrorist groups", state TV quoted a Foreign Ministry statement as saying.
"The new sanctions … are not compatible with America's commitments and resolution 2231 of the UN Security Council that endorsed the nuclear deal reached between Iran and six powers," the statement said.
"In retaliation for the US sanctions, Iran will impose legal restrictions on some American individuals and entities that were involved in helping and founding regional terrorist groups."
The US Treasury, which listed the individuals and entities affected on its website, said the sanctions were "fully consistent" with US commitments under the nuclear deal clinched between Tehran and six major world powers in 2015, known as the Joint Comprehensive Plan of Action (JCPOA). Some of the entities involved are based in the United Arab Emirates, Lebanon and China.
"Today's action is part of the Treasury's ongoing efforts to counter Iranian malign activity abroad that is outside the scope of the JCPOA," the US Treasury said.
Ahead of the announcement, Iranian Foreign Minister Mohammad Javad Zarif tweeted: "Iran unmoved by threats as we derive security from our people. We will never initiate war, but we can only rely on our own means of defence."
Mr Zarif led the nuclear negotiations in 2015.
Cuba policies under review
The status of US relations with Cuba, a country which has expressed support for Iran's nuclear program, has also been drawn into question.
Press secretary Sean Spicer said the Trump administration was in the midst "of a full review of all US policies towards Cuba", with a focus on its human rights policies, as part of a commitment to such rights for citizens throughout the world.
Mr Spicer made the comment during a press conference in response to a question about whether the administration of Mr Trump planned any policy changes toward Cuba.
Under the Obama administration, Cuba and the US agreed to re-establish full diplomatic relations, severed 55 years ago in the angry heat of the Cold War.
What is targeted under the new Iran sanctions?
Among those sanctioned on Friday were companies, individuals, and brokers the US Treasury said supported a trade network run by an Iranian businessman, Abdollah Asgharzadeh.
The Treasury said Mr Asgharzadeh supported the Shahid Hemmat Industrial Group, which the United States has said is a subsidiary of an Iranian entity that runs Iran's ballistic missile program.
The Treasury also sanctioned what it said was a Lebanon-based network run by the Islamic Revolutionary Guard Corps, the elite military body that is also powerful in Iranian politics and the economy.
Later in the day, US House Speaker Paul Ryan declared his support for the sanctions in a statement.
"Iran's latest ballistic missile test was a flagrant violation of UN Security Council resolutions," the statement said.
"This swift and decisive response proves that our new administration is serious about holding the Iranian regime accountable for its illicit behaviour.
"I applaud President Trump for imposing new sanctions to crack down on Tehran's dangerous ballistic missile program and support for terrorism across the globe."
The Islamic Republic has test-fired several ballistic missiles since the nuclear deal in 2015, but the latest test was the first since Mr Trump took office last month.
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