Iran launched production of the domestically designed Kowsar fighter plane on Saturday, state television reported, after the United States announced the reimposition of sanctions on Tehran.

"Soon the needed number of this plane will be produced and put at the service of the Air Force," Defense Minister Amir Hatami said at a ceremony to inaugurate the production line.

He added that the venture highlights the capabilities of Iranian experts despite "sanctions by enemies."

Read more: Iran braces as US prepares to reimpose pre-JCPOA sanctions

Bracing for sanctions

The event came a day after the United States said it would reintroduce wide-reaching sanctions targeting Iran's oil sales and banking sector from Monday. With the clampdown, US President Donald Trump is hoping to force Iran to abandon its nuclear program, missile development and support for proxy forces in the Middle East.

The measures will be the second round of sanctions implemented by the US since Trump's decision in May to withdraw from a 2015 landmark nuclear accord between Tehran and world powers.

Read more: EU plan to sidestep Iran sanctions: How will it work?

Iran, which already uses US-made fighter jets and Russian-made Sukhoi planes, first unveiled its Kowsar aircraft in August. It says the model is "100-percent indigenously made" and capable of carrying various weapons, but some experts claim it is an exact copy of the F-5 jet first produced in the US in the 1960s.

US sanctions against Iran are back in effect Sanctions signed off US President Trump signed an executive order on August 5 aimed at piling financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities. Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."

US sanctions against Iran are back in effect Where's the money? The first phase, which took effect on August 7, targets the Islamic Republic's access to US banknotes, making transactions in a US-dollar dominated financial world difficult. A ban on Iran purchasing precious metals including gold further serves as an attempt to cut the country off from global markets.

US sanctions against Iran are back in effect Planes, cars and carpets Phase one also hits key industries including the purchase of commercial planes, cars and carpets. Iranian imports of graphite, aluminum, steel, coal, gold and some software are also affected. German automaker Daimler called off the production and sale of Mercedes-Benz trucks in Iran indefinitely after the sanctions came into force.

US sanctions against Iran are back in effect Fuel to the fire A second phase of sanctions — which is due to take effect on November 5 and will block Iran's oil sales — is due to cause more damage. Several countries, however, including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.

US sanctions against Iran are back in effect 'Psychological warfare' Iranian President Hassan Rouhani said that the United States had launched "psychological warfare" against Iran to create division amongst its people. But he insisted that Iran still can rely on its allies China and Russia to keep its oil and banking sectors afloat. He has also demanded compensation for decades of American "intervention" in the Islamic Republic.

US sanctions against Iran are back in effect EU protection European Union foreign policy chief Federica Mogherini said the bloc is encouraging small and medium enterprises to increase their business with Iran. She said Tehran has been compliant with their nuclear-related commitments. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions. Author: Keith Walker



nm/kl (AP, Reuters)

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