Theresa May has challenged Donald Trump on the impact of sanctions against Iran which will affect UK firms doing business there, amid a growing European backlash.

In a phone call dominated by Iran, the Prime Minister and President agreed to hold talks between the UK and US governments on the effect of sanctions on British companies.

The sanctions clash came as some European countries, including France and Germany, served notice that they are considering counter measures to allow their firms to keep trading with Iran.

President Trump announced plans for sanctions when he confirmed on Tuesday that he was pulling the US out of the Iran nuclear deal - which he said was "rotten", "horrible" and "one-sided".

Within minutes of the President's announcement, Mrs May, French president Emmanuel Macron and German ChancellorAngela Merkel issued a joint statement expressing their "regret and concern".


And after her phone call with the president, a Downing Street spokesman said Mrs May had raised sanctions and re-stated her support for the Iran nuclear deal.

"The Prime Minister reiterated the government's position on the Iran nuclear deal, noting that we and our European partners remain firmly committed to ensuring the deal is upheld, as the best way of preventing Iran from developing a nuclear weapon," a spokesman said.

Image: Merkel and Macron were in Aachen, Germany, on Thursday and called for a de-escalation in tensions in the Middle East

And the Number 10 spokesman added: "The Prime Minister raised the potential impact of US sanctions on those firms which are currently conducting business in Iran. They agreed for talks