President Hassan Rouhani on Tuesday ruled out holding any bilateral talks with the United States and threatened to further cut Iran's commitments to a nuclear deal within days.

His comments were followed by the US imposing sanctions on Iran's space programme, as Washington claimed a recent explosion on a launch pad was a sign of missile work.

Iran and three European countries -- Britain, France and Germany -- have been trying to save a landmark agreement reached in 2015 and meant to limit Tehran's nuclear programme after the US pulled out last year.

But French Foreign Minister Jean-Yves Le Drian cautioned that several issues were still hindering their efforts.

"There is still lots to work out. It's still very fragile," Le Drian told journalists in Paris on Tuesday.

France has been leading efforts for dialogue, with President Emmanuel Macron expressing hope during G7 talks in late August of organising a meeting between Rouhani and US President Donald Trump.

However, in a speech to Iran's parliament on Tuesday, Rouhani said any dialogue with the US would have to fall within the framework of the six major powers that agreed the nuclear deal.

"Maybe there has been a misunderstanding. We've said it several times and we repeat it -- there has been no decision to hold bilateral talks with the US," said the Iranian president.

"In principle, we don't want bilateral talks with the United States," he told lawmakers, saying Tehran had rebuffed several proposals for such talks.

"If the United States lifts all sanctions... it would be possible to talk (to them) during 5+1 meetings as in the past," Rouhani said, referring to the powers involved in negotiating the 2015 deal.

Tehran and Washington have been at loggerheads since May 2018 when Trump unilaterally withdrew the US from the nuclear deal and began reimposing crippling sanctions.

The arch-foes were on the cusp of confrontation in June when Iran downed a US drone and Trump ordered retaliatory strikes before cancelling them at the last minute.

On Tuesday, US Secretary of State Mike Pompeo said that the US was imposing sanctions on the Iran Space Agency and two affiliated research centres, in order to constrain its ballistic missile capabilities.

The move came after an explosion at an Iranian satellite launch pad on August 29, which Pompeo alleged was an "attempt to launch a space launch vehicle".

"The United States will not allow Iran to use its space launch program as cover to advance its ballistic missile programs," he added.

- Countermeasures -

In response to the US withdrawal from the nuclear deal, Iran has scaled back its nuclear commitments.

The 2015 deal had given it the promise of relief from sanctions in return for curbs on its atomic programme.

It has already increased its uranium enrichment and stockpiles, and Rouhani said Tuesday a "third step will be enacted in the coming days" unless the remaining parties to the deal honour their own commitments.

Reacting to the threat, a French diplomat involved in talks with Tehran said any further violation of the deal would send a "bad signal".

The diplomat, who spoke on condition of anonymity, said such a move would "make the (mediation) work more complicated", but said France would remain engaged with Tehran to try promote dialogue.

On Friday, the International Atomic Energy Agency said just over 10 percent of Iran's uranium stockpile was enriched to 4.5 percent, above the 3.67 percent limit stipulated in the 2015 deal.

The UN watchdog said Iran's total stockpile of uranium, which under the accord should be no more than the equivalent of 300 kilograms (661 pounds) of uranium hexafluoride, stood at roughly 360 kilograms.

- 'US betrayal' -

But Rouhani stressed the Iranian countermeasures were reversible.

"Our steps have been taken in such a way that it doesn't take much time to get back to the starting point," he said.

He also voiced regret over the failure of European governments to fulfil pledges they made during negotiations.

"Europeans haven't acted on their commitments or couldn't... in some cases they could have acted but did not," he said.

"What we are asking of the other countries is that they continue to buy our oil.

"We can continue negotiations even after the third step," he added.

Rouhani has had a series of phone calls with Macron in recent weeks aimed at salvaging the nuclear deal.

The French president has been trying to convince the US to offer Iran relief from sanctions it has imposed on the Islamic republic since pulling out of the agreement.

The 2015 deal was brokered between Iran and the so-called 5+1 -- UN Security Council permanent members Britain, China, France, Russia and the United States plus Germany.

French FM says 'still lots to work out' to save Iran nuclear deal
Paris (AFP) Sept 3, 2019 - French Foreign Minister Jean-Yves Le Drian said Tuesday that several issues were still hindering a French-led bid to save a landmark 2015 accord limiting Iran's nuclear programme.

"There is still lots to work out, it's still very fragile," Le Drian told journalists in Paris about the talks between Tehran and three European countries -- France, Britain and Germany -- to keep the nuclear deal alive after US President Donald Trump pulled out of it last year.

Trump later reimposed harsh sanctions that have pummelled the Iranian economy, prompting a defiant Tehran to ramp up its uranium enrichment to levels in breach of the 2015 deal.

France has been leading European efforts to foster dialogue, with President Emmanuel Macron expressing hope during G7 talks in late August of organising a meeting between Rouhani and US President Donald Trump.

However, in a speech to Iran's parliament on Tuesday, President Hassan Rouhani ruled out bilateral talks with the US and threatened a third step away from the deal "in the coming days."

Reacting to the threat, a French diplomat involved in the talks with Tehran said any further violation of the deal would send a "bad signal".

The diplomat, who spoke on condition of anonymity, said such a move by Iran would "make the (mediation) work more complicated" but added that France would pursue its efforts "because there is no other way of getting out of the current escalataion (between the US and Iran) than what we are proposing."

On Monday, an Iranian delegation travelled to Paris for talks with French officials.

Le Drian said the discussion focused on a possible credit line for Tehran in exchange for oil, conditioned on Iran's renewed compliance with the 2015 deal.

Tehran would also have to commit to easing geopolitical tensions in the Gulf region, and participate in Middle East talks on improving regional security, Le Drian said.

"That all supposes of course that President Trump allows waivers on some points" of the new US sanctions on Iran, he added.

A conservative Iranian lawmaker was quoted by media reports at the weekend as saying that Macron had proposed a $15-billion (13.7-billion-euro) credit line, a figure that French officials have not confirmed.

- 'It should work' -

As part of their efforts to keep the nuclear deal alive, France, Germany and Britain have set up a mechanism called INSTEX that would allow continued trade with Iran despite the US sanctions.

"We have to finish the work on INSTEX... normally it should work," Le Drian said.

Macron and Rouhani have held a series of phone calls in recent weeks aimed at salvaging the nuclear deal.

Trump caused surprise at a G7 summit in France last week by saying he would be prepared to meet his Iranian counterpart.

Le Drian said that Macron had "sensed that president Trump was open to softening the strategy of maximum pressure, to find a path that could allow a deal to be reached."

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Iran says views converging with France on breaking impasse
Paris, France (AFP) Sept 2, 2019
Iran said Monday its views have been converging with those of France on ways to save a nuclear deal at risk of unravelling since the US withdrew last year. Government spokesman Ali Rabiei also suggested President Hassan Rouhani could meet US counterpart Donald Trump if it served Iran's interests, while cautioning there was no need to meet an "agitator" in the current circumstances. Rouhani has had a series of phone calls with French President Emmanuel Macron in recent weeks aimed at salvaging th ... read more