InvestIdeas

After the move by Trump, companies would have 90 to 180 days to wind down existing contracts with Iranian companies.

"While Chinese compliance is probably a nonstarter, we do anticipate a high degree of cooperation from European, Japanese and South Korean corporates despite their host government's opposition to the U.S. move."

According to the Israeli military, Iran’s Quds Force, the expeditionary unit of the Revolutionary Guards, launched 20 artillery rockets into the Golan Heights.

Israel said that some of the rockets were intercepted and shot down by its Iron Dome missile defence system.

A few got though and caused “some damage” to Israeli military installations but no casualties.

The Israeli army said it hit back by striking “dozens” of Iranian sites in Syria, targeting intelligence, storage and logistics as well as the origin of the rockets.

US ambassador to Germany, Richard Grenell said that German companies doing business in Iran “should wind down operations immediately” before sanctions were reinstated in 90 days.

France said that the European Union was ready to take the US to the World Trade Organisation if Washington went ahead with plans to hit European companies. The WTO can be asked to settle disputes among members and allow them to impose sanctions.

Another proposal being considered is an EU “blocking regulation” of the kind used in 1996 to deny legal status to US sanctions on European companies doing business with Libya, Cuba and Iran.

Some 28 Israeli aircraft fired around 60 air-to-surface missiles at Syria during the exchange.

Israel also launched roughly 10 surface-to-surface missiles, which struck military targets near Damascus and in Southern Syria.

The Golan Heights is widely seen as Israeli-occupied territory after it was taken from Syria during the 1967 Six-Day War.

Beijing has, however, agreed not to ramp up purchases of Iranian crude. That would ease concerns that China would work to undermine US efforts by purchasing excess oil.

While the Trump administration has said it wants to cut Iranian oil exports to zero by November 4, most analysts viewed that target as unlikely.

Unfazed, the administration has warned that even allies would face sanctions if they did not show “significant” progress in reducing Iranian oil purchases by November 4, ruling out broad exemptions or waivers.

China – the world’s top crude buyer and Iran’s main customer – lifted monthly oil imports from the country by 26 per cent in July. It accounted for 35 per cent of Iranian exports last month.