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Iran has used embassies as cover to plot terrorist attacks, the US State Department said on Wednesday, and all countries should carefully examine staff at Iranian diplomatic missions.

Iranian vice president Eshaq Jahangiri acknowledged on Tuesday that U.S. sanctions would hurt the economy but promised to "sell as much oil as we can" and protect its banking system.

Iran is the third-largest exporter of crude oil in the world, behind Saudi Arabia and Russian Federation.

US Secretary of State Michael Pompeo said on Tuesday that Washington may grant waivers to the countries that seek relief from strict oil sanctions that the Trump administration intends to impose on Iran from Nov 4.

Tehran has said the European parties to the nuclear deal, which are close USA allies, need to provide Iran with practical guarantees that its economic dividends from the agreement would remain intact with the return of American sanctions.

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Shipping to Iran and ports in the country are also coming under the United States sanctions.

". If India were to replace Iran with countries like Saudi Arabia, Russia, Iraq, the United States and others for the 10 per cent of its oil demand then it may have to revert to dollar-denominated imports which mean higher CAD (Current Account Deficit) and deprivation of all other privileges Iran has offered to India", Mr Rahaghi said.

The other signatories to the accord, which include Russia, China, the UK, France and Germany, however, have strongly objected to the US's withdrawal, and vowed to try to preserve the deal.

Trump said he would reintroduce sanctions, and Washington later told countries they must stop buying Iran's oil from November 4 or face financial consequences.

According to the data from shipping and industry sources, India's oil imports from Iran declined by 15.9 % in June which was the first month after the U.S. gave its ultimatum.

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"Well, that will violate the sanctions that we put in place".

European powers that still support the nuclear deal say they will do more to encourage their businesses to remain engaged with Iran - though a number of firms have already said they plan to pull out. Imports from other Middle East suppliers also increased.

But the National Iranian Oil Company (NIOC) reported this week that Iranian oil exports may decrease to 500,000 bpd when the sanctions kick in.

Reuters' vessel tracking data show three of the eight tankers charted by Swiss and Chinese traders and sent to India in recent weeks were destined for a port near Reliance Industries Ltd's Jamnagar refinery, the world's largest.

The Iranian oil ministry said last week that it exported 2.2 million barrels per day of crude oil in June.

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Imports by state refiners during the period more than doubled to about 413,400 bpd from 191,700 bpd, the data showed.