US President Donald Trump has imposed new sanctions against the Iranian metal sector, further escalating tensions, with Tehran saying it will return to enriching uranium.

Trump imposed further restrictions on Iran’s mining industry on Wednesday after a frustrated Tehran said it would suspend some promises it made under a nuclear deal rejected by Washington in a move aimed chiefly at persuading Washington's European allies to step up to preserve the agreement.

President Hassan Rouhani said the ultimatum was intended to salvage the nuclear deal from Trump, whose sanctions have caused severe pain in Iran.