Tillerson accused Iran of intensifying multiple conflicts including the one in Syria, undermining USA interests in several countries, continuing to support attacks against Israel, and sponsoring cyber and terror attacks across the world.
In the same notification, the administration said Iran is complying with the landmark nuclear deal negotiated by former President Obama, and the USA has extended sanctions relief to Tehran in exchange for curbs on its atomic program.
But Tillerson added that the current administration would evaluate whether the lifting of sanctions that had been placed on Iran "is vital to the national security interests of the United States". During the 2016 presidential election campaign, Donald Trump said his "number one priority is to dismantle the disastrous deal with Iran".
"The five other world powers that are party to the deal insist on a complete implementation of it and would not side with the U.S.to cancel it", he said.
"Iran remains a leading state sponsor of terror through many platforms and methods", Tillerson said in his letter Tuesday.
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While Tillerson said the United States would not intend to walk away from the landmark accord, he argued the deal was merely a way for Iran to delay the development of a nuclear weapon.
At the time the deal was reached, Trump called the Iran deal "terrible" and said it would "lead to nuclear holocaust".
The next big test for the nuclear deal is likely to come in June, when sanctions waivers signed by President Obama will be due for renewal. At least that's what the Trump administration has seemingly acknowledged.
But to critics, it is a sign that a presidential candidate who promised to rip up the nuclear pact with Iran is discovering that walking away from multilateral agreements is much more hard once in office. While Tillerson acknowledges that Iran is abiding by the terms of the deal, the Trump administration is still considering violating the deal by reapplying sanctions due to Iran's continued support for terrorism, according to a report by CNN.
"If the sanctions are specific to human rights issues or ballistic missiles, they're technically outside the purview of the agreement and could work", she said. And think about the high level of tolerance they have for deception by the Iranians. "What I see is a more strict (US) interpretation of the deal and that interpretation will be different than Iran's interpretation".
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"The strategy is to use rhetoric to distract from the reality", Mr Rubin said.
Iranian naval vessels continue to undermine freedom of navigation in the Persian Gulf by harassing US naval vessels that are operating lawfully.
Earlier this week, Vice Foreign Minister Han Song-ryol told the BBC: "We'll be conducting more missile tests on a weekly, monthly and yearly basis", and warned of an "all-out war" if the United States engaged in military action.
But Obama had said the deal would make the world safer and more secure. "The more confrontational the war of words and the longer it continues, the greater the possibility that words and rhetoric becomes policy". "The Trump administration has no intention of passing the buck to a future administration on Iran", Tillerson said at a press briefing.
The White House is conducting a top-to-bottom review of Iran policy, including an evaluation of the deal officially known as the Joint Comprehensive Plan of Action.
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In the Middle East, Defense Secretary James Mattis on Wednesday told reporters who asked about Iran's role in Yemen and elsewhere that, "Everywhere you look, if there's trouble in the region, you find Iran".