While the administration said it has reduced Iran's daily oil exports by more than a million barrels a day, Pompeo acknowledged the us granted eight countries waivers to continue buying Iran's oil without penalties for six more months.
Iran's vice president Eshaq Jahangiri said the Tehran government hopes to continue exporting oil despite the USA sanctions.
The US move restores sanctions lifted under a 2015 nuclear deal negotiated by the administration of President Barack Obama and five other world powers.
He also noted that the USA has only been isolating itself more and more from the rest of the world by imposing sanctions on Iran.
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Powerful Shia cleric Ayatollah Ahmad Alamolhoda issued the chilling warning to the Trump administration about the consequences of cutting off Iranian oil exports in its latest round on sanctions. "We are intent on ensuring that global funds stop flowing to the coffers of the Iranian regime". The price pressure on oil has scared off financial traders.
Following the USA exit, Iran and the remaining parties launched talks to save the accord. Foreign Minister Mohammad Javad Zarif said United States "bullying" was backfiring by making Washington more isolated, a reference to other world powers opposed to the initiative.USA sanctions permit trade in humanitarian goods such as food and pharmaceuticals, but measures imposed on banks and trade restrictions could make such items more expensive.
"We have chose to issue temporary allotments to a handful countries responsive to the specific circumstances and to ensure a well supplied oil market", Pompeo said.
However, Iran's clerical rulers have dismissed concerns about the impact of sanctions on the economy.
"The US maintains it will do that but actually I think it's speaking slightly with a forked tongue because, although they will sometimes allow pharmaceuticals to get through and not be subject to American sanctions, the banks will not finance such trade and will not process payments".
Trump on Friday evening reasserted his openness to reaching a new Iran deal "that forever blocks its path to a nuclear weapon, addresses the entire range of its malign actions, and is worthy of the Iranian people".