"Instead, I have outlined two possible paths forward: either fix the deals disastrous flaws, or the United States will withdraw".
Mr. Trump now will work with European partners on a follow-on agreement that enshrines certain triggers that the Iranian regime can not exceed related to ballistic missiles, said senior administration officials who briefed reporters on the decision.
Iran's foreign minister, Mohammad Javad Zarif, wrote Saturday on Twitter that the nuclear agreement between Iran, the United States and other world powers was "a solid multilateral agreement" that Trump was "maliciously violating".
The Trump administration also said it hopes for an amendment to congressional legislation that imposes triggers on Iran of its own- and that for the first time characterizes Tehran's ballistic missile program as "inseparable" from its nuclear work, bringing with it harsh sanctions. The agreement was reached during Barack Obama's presidency.
In a telephone conversation with Trump on Thursday, French President Emmanuel Macron reiterated "the determination of France to support the strict implementation of the 2015 Iran nuclear agreement and the importance of it being respected by all signatories", said the Elysee Palace. The argument for staying in, the official said, was to allow time to toughen the terms of the agreements.
He accused Iran of committing "multiple violations" and promised to work with Congress to "address the deal's many serious flaws".
President Trump spent a lot of time on the campaign trail and his first year in office railing against the Iran deal that the US and several European countries signed with the Middle East nation in 2015.
Iran threatens to seriously respond to USA sanctions against judiciary head
The other parties to the agreement would have been unlikely to join the United States in reimposing sanctions. But Trump's refusal to certify the deal to Congress did not pull the USA out of the deal itself.
The United States is the only party that has threatened to scrap the deal, a stance that has been confronted by other participants.
Zarif slammed Trump's reluctant announcement on Iran's nuclear sanctions waiver as a "desperate attempt" to undermine the deal.
Sarah Huckabee Sanders said on Thursday that Trump "still strongly believes this was one of the worst deals of all time".
Iran says the missiles it has tested are not created to carry nuclear warheads and insists its nuclear programme is entirely peaceful.
"It's incumbent on those who oppose the (deal) really to come up with that better solution, because we haven't seen it so far", he said.
Trump in October chose not to certify compliance and warned he might ultimately terminate the accord.
As the tensions between Washington and Tehran continue to rise, a senior Iranian official said that his country will continue to develop ballistic missiles. Targets include the head of the Iran judiciary, Sadegh Amoli Larijani, and a Chinese ceramics company called BOCHUANG CERAMIC, INC.