So, what happens next?
He has said that Iran "will not accept any restrictions beyond its commitments" to comply with worldwide rules in the years ahead. If history is any guide, there is little chance of this happening, so we are now on a course of escalating confrontation.
Pompeo said he was "hopeful in the days and weeks ahead we can come up with a deal that really works, that really protects the world from Iranian bad behaviour, not just their nuclear programme, but their missiles and their malign behaviour as well". There will be a 90-day and 180-day wind down period before sanctions really start to bite, which puts the deadline at early November.
But why? In short, Iran is the third largest player in the Organisation of Petroleum Exporting Countries (Opec), producing 2.5 million barrels a day. The EU, China and Russian Federation have said they are sticking with the deal. Now EU officials say they are revamping the statute to avoid the latest U.S. restrictions on firms doing business with Iran.
Based on that formula, buyers will ask for a six-month exemption from US penalties in exchange for reducing the amount of crude purchased from Iran by 20 percent every six months.
OPEC is in no hurry to decide whether to pump more oil to make up for an expected drop in exports from Iran after the imposition of new USA sanctions, four sources familiar with the issue said, saying any loss in supply would take time.
Buyers of Iran's crude oil are winding down their business with the Islamic Republic after U.S. President Donald Trump's decision to pull out of the nuclear deal between Iran and world powers and reimpose sanctions.
Boeing has yet to deliver any aircraft to Iran under those deals and said that it will "continue to follow the USA government's lead".
"We urge the U.S. to ensure that the structures of the JCPOA can remain intact, and to avoid taking action which obstructs its full implementation by all other parties to the deal", a statement provided by British Prime Minister Theresa May's office said.
"We believe the previous 1 million bpd limit for exports (imposed during previous sanctions) will be reimposed". This is unlikely to happen this time around as the USA has revoked the deal unilaterally and against the will of most other countries.
On Wednesday, a separate OPEC source had said Saudi Arabia was monitoring the impact of the USA move on oil supplies and was ready to offset any shortage but would not act alone.
Barclays does not see a significant impact on the oil market either.
And he said any Iranian nuclear development would be matched by Saudi Arabia.
A lot depends on what Iran does next.
Oil market participants Friday were looking ahead to weekly data from Baker Hughes on the number of rigs drilling for oil in the US, a key barometer for activity in the sector.
The American president's withdrawal, as well as increasing investments into alternative energy, sent prices soaring last week to their highest level since 2014, the NZ Herald reported.
He said Trump's withdrawal also meant multiple cases of "significant non-performance" with the nuclear deal, and "clear non-compliance" with resolution 2231 of the UN Security Council, which endorsed the deal. "The major concern in Tehran is not around volumes of crude that it could sell - not in the short to medium term at any rate - but over transfer of payments for those volumes", according to Argus Media. Only Israel and Saudi Arabia expressed support for the USA president's stance. Goldman Sachs Group Inc. sees an upside risk to its oil price forecast following Trump's actions on Iran.
Trump "coming forward and not renewing the deal, and adding sanctions back, obviously is very constructive for crude oil prices", said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets.