LONDON - British Prime Minister Theresa May and US President Donald Trump agreed in a phone call on Friday that talks were needed to discuss how US sanctions on Iran would affect foreign companies operating in the country.

Trump's decision to pull the United States out of the Iranian nuclear deal and revive US economic sanctions has alarmed the leaders of Britain, France and Germany who remain committed to the deal and who have significant trade ties with Tehran.

"The prime minister raised the potential impact of US sanctions on those firms which are currently conducting business in Iran," her spokeswoman said. "They agreed for talks to take place between our teams."

The spokeswoman said May had told Trump that Britain and its European partners remained "firmly committed" to ensuring the deal was upheld as the best way to prevent Iran from developing a nuclear weapon. Iran says its nuclear programme is for peaceful purposes only.

The two leaders also condemned Iranian rocket attacks against Israeli forces earlier this week and strongly supported Israel's right to defend itself.

"They agreed on the need for calm on all sides and on the importance of tackling Iran's destabilising activity in the region," the spokeswoman said.

Reuters