Trump Says There 'Might Be an Escalation' Between US, Iran

US Secretary of State Mike Pompeo arrives at Brussels Airport

Russia, China and the big European powers say they still back the 2015 multinational nuclear deal with Iran, despite U.S. President Donald Trump's decision to pull out.

This may cut Iran's hard currency earnings from oil exports, and the prospect has triggered a panicked flight of Iranians' savings from the rial into dollars, weighing on an already ailing local currency, hit by economic woes and financial difficulties at local banks.

"We must cut off all funding the regime uses to fund terrorism & proxy wars", Pompeo said in a Twitter post ahead of his scheduled meeting with European Union's foreign affairs and security policy representative Federica Mogherini in Brussels.

He has also accused Tehran of continuing to sell weapons in the Middle East despite United Nations resolutions. "It's our responsibility to stop it".

"Just this past week there were Iranians arrested in Europe who were preparing to conduct a terror plot in Paris, France".

The suspect was one of several people detained in Germany, Belgium and France who had allegedly planned to bomb a rally held by a controversial exiled Iranian group near Paris on 30 June.

Assadi was detained earlier this month near the German city of Aschaffenburg on a European warrant after the couple with Iranian roots was stopped in Belgium and authorities reported finding powerful explosives in their vehicle.

German prosecutors said Wednesday that a court had two days earlier remanded Assadi in custody on charges of foreign intelligence activities and conspiracy to murder.

The suspect is believed to be a member of Iran's Ministry of Intelligence and Security, which is tasked with the "observation and fight against opposition groups inside and outside Iran", the prosecutors' statement said.

Belgian authorities are also seeking Assadi's extradition over the alleged plot.

They had allegedly planned to bomb the rally by an exiled Iranian opposition group in Villepinte near Paris that was attended by several USA politicians. They want him extradited.

The 46-year-old diplomat allegedly gave the pair a device containing 500 grams (17.6 ounces) of TATP (triacetone triperoxide) explosive in Luxembourg shortly before the opposition meeting took place. The formerly armed group was removed from European Union and US terrorism lists several years ago after denouncing violence and getting western politicians to lobby on its behalf.

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