Iran President Rouhani says Trump's call for talks aimed at creating chaos in Iran

Iranian President Hassan Rouhani said on Monday Tehran could hold talks with the United States only if Washington proved its trustworthiness after it exited a nuclear deal and reimposed sanctions on the Islamic Republic.

"We are always in favour of diplomacy and talks ... But talks needs honesty ... The US reimposes sanctions on Iran and pulls out of the (2015) nuclear deal, and then wants to hold talks with us," Rouhani said in a speech broadcast live on state television.

"Trump's call for direct talks is only for domestic consumption in America ... and to create chaos in Iran."

Washington's call for new negotiations at the same time as it reimposes crippling sanctions "makes no sense", he said. 

"Negotiations with sanctions doesn't make sense. They are imposing sanctions on Iranian children, patients and the nation," he said in a televised interview. 

The so-called snapback sanctions, due to come into force early on Tuesday, would target Iranian purchases of US dollars, metals trading and other dealings, coal, industrial-related software and its auto sector.

Iran's rial currency has lost half its value since April under the threat of revived US sanctions. The plunge in the currency and soaring inflation have sparked sporadic demonstrations in Iran against profiteering and corruption, with many protesters chanting anti-government slogans.

President Donald Trump is aiming to cut off the Iranian leadership's access to resources, the officials said. The United States also plans to re-introduce potentially more damaging sanctions on Iranian oil in November.

But the US sanctions strategy has several weak spots, especially a reluctance by Europe and China to curtail business with Iran.

The European Union voiced regret on Monday at the looming US sanctions.

Trump warned on Monday of "severe consequences" for people or entities that fail to wind down economic activities with Iran.

"The United States is fully committed to enforcing all of our sanctions, and we will work closely with nations conducting business with Iran to ensure complete compliance," he said in a statement.

(With inputs from agencies)