Trump said this is the last chance, and in the absence of an agreement, the USA would not remain a party to the deal.
Trump, he said, would agree to stay in the JCPOA if the agreement would "never expire" and would not entail direct negotiations with Iran, but only with the European partners only, all of which on Thursday stated their support for the JCPOA in meeting with Iran's Foreign Minister Javad Zarif in Brussels.
But the Trump administration indicated on Friday that it was losing patience with Iran. The agreement was reached during Barack Obama's presidency.
The US administration added 14 new individuals and entities to the sanctions list whom it accuses of human rights abuses and censorship.
The decision was to be announced in a statement issued by the White House a day after Trump engaged in lengthy discussions with US Secretary of State Rex Tillerson, national security adviser H.R. McMaster and others about the deal.
The 2015 Iran nuclear deal was struck between the United States, under the administration of former President Barack Obama, Iran and five other countries. Work already has begun on this front, the official said.
That decision came despite the United Nations having certified Iran's compliance with the deal eight times.
US presidents, under existing American law, must waive the sanctions every few months to prevent them from causing Iran to declare the nuclear pact violated and simply walk away to resume pursuit of an atomic arsenal.
"That's the heart of the decision", the senior official explained.
A report this week by analysts at the NY financial services company Citigroup said any move to weaken the nuclear deal would cause the "dislocation of at least 500,000 barrels a day of Iranian crude oil exports, especially those going to Korea and Japan, as well as to some European countries", according to CNBC.
Iran's foreign ministry in a statement ruled out any renegotiation of the terms, saying it "will not accept any changes in this agreement now or in the future" nor allow it to be linked to any other issue.
Iran says its nuclear program is only for peaceful purposes.
Mr Trump has repeatedly criticised the accord, while Iran has accused the U.S. of failing to comply with it. In November, the body again said Iran was in compliance.
Trump on Friday extended the waivers of key economic sanctions that were lifted under the agreement limiting Iran's nuclear program.