Trump is also urging Congress to reform USA law so the president is no longer required to declare every 90 days whether he thinks Iran is in compliance, or to renew sanctions waivers every 120 or 180 days.
Trump has argued behind the scenes that the nuclear deal makes the United States look weak, a senior USA official said. However, time after time, President Trump has (perhaps reluctantly) certified that Iran was cooperating with the deal.
On Thursday, hours before Mr Trump made his decision, European foreign ministers met in Brussels with Iranian Foreign Minister Mohammad Javad Zarif, ostensibly to press Teheran about its destabilising activities in the region, which are putting the nuclear deal at risk. The European countries which signed on, including the U.K., France, and Germany urged the USA to stay in on Thursday, claiming that Iran has been holding up its side of the bargain since the deal was signed. Others were linked to support for the country's ballistic missile program.
"By deliberately creating uncertainty at every three month deadline as to whether the USA will honor its commitments, Trump makes it impossible for sanctions relief to move forward as promised under the accord", he said in a statement.
For weeks, world leaders have speculated whether Trump, who on the campaign trail called the Iran agreement "the worst deal ever", would carry through and pull out of the worldwide agreement.
"Fourth, the legislation must explicitly state in United States law-for the first time-that long-range missile and nuclear weapons programs are inseparable, and that Iran's development and testing of missiles should be subject to severe sanctions".
The next deadline to waive sanctions under the agreement is the middle of May. Scuttling the nuclear deal would be a disaster, especially with the mass protests going on in Iran right now. European co-signatories to the deal criticized Trump's decision not to re-certify the Iran deal at the time and may be unwilling to work with the administration.
Trump declared in October that the agreement was "one of the worst and most one-sided transactions the United States has ever entered into", and warned that within a few years Iran would be able to "sprint towards a rapid nuclear weapons breakout".
Letting the waivers lapse would have violated the 2015 agreement that Iran reached with world powers in exchange for curbing its nuclear program, said the report. But he is not proposing "direct talks" with the Iranian government, the official said.
On the eve of Trump's announcement, diplomats from Britain, France, Germany and the European Union again called on Trump to uphold the pact. The president also gave European allies 120 days to rework the deal or said the United States would withdraw.
The president later released a statement on the Iran deal, announcing 14 more nonnuclear sanctions. If Iran does not comply with any of these provisions, American nuclear sanctions would automatically resume.