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Three months ago, the USA withdrew from a 2015 agreement among world powers and Iran in which global sanctions against Tehran were lifted.

Iran said its Islamic Revolutionary Guard Corps held a naval exercise in the Strait of Hormuz last week "within the framework of their annual training program".

But US President Donald Trump made a decision to reimpose punishing sanctions against Iran, whom he has accused of posing a security threat.

Teams of USA officials have been visiting capitals around the world to try to choke off sales of Iranian oil by early November, when US sanctions are due to snap back into effect.

On Sunday Iran Air will take delivery of five ATR commercial aircraft from the French-Italian firm, slipping in under the wire before the sanctions return.

The Chinese position comes as the debate over the Iranian deal butts up against tense U.S.

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Iran's actions in the globally significant waterway raised concerns last week after a U.S. assessment found IRGC assembled a fleet of more than 100 boats and hundreds of Iranian troops were expected to participate.

The matter is awkward for Germany because the government is also committed to keeping alive the 2015 deal it, along with the USA and other world powers, signed with Iran which provides incentives in exchange for Tehran not pursuing a nuclear weapon. United Nations inspectors said Iran was complying with the deal, but Trump felt the agreement did not go far enough.

The nuclear deal with world powers would have allowed Iran to replace its entire domestic fleet although military aircraft were always prohibited.

US sanctions targeting Iranian trade in automobiles, gold and other key metals will be re-imposed on Monday, while sanctions targeting the country's energy and banking sector will resume November 4. The US Energy Information Administration calls it "the world's most important oil transit chokepoint", with 20% of oil traded worldwide moving through the waterway, which is about 30 miles wide at its narrowest point.

U.S. officials have softened their stance after initially saying they would press allies in Europe, Asia and the Middle East to adhere to the sanctions and reduce their imports to zero.

Repeating the pattern of past weeks, crude prices on Friday ended the week down by 0.4 percent for West Texas Intermediate and 1.5 percent for Brent, this time in reaction to China state oil major Sinopec cutting its purchases of us product due to the trade spat between both countries. He did not elaborate.


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