Pompeo's announcement came just a few hours after the International Court of Justice ordered the United States to ensure that sanctions against Iran, due to be tightened next month, do not affect humanitarian aid or civil aviation safety.
During his announcement at the State Department on Wednesday, Pompeo said with a chuckle, "This is a decision, frankly, that is 39 years overdue", an apparent reference to the 1979 Iranian revolution in which the us -backed Shah was overthrown.
But Pompeo stood firm Wednesday, and told reporters who attended a press conference at the State Department: 'This is a decision frankly that is 39 years overdue'.
The ruling by the International Court of Justice "once again shows that the USA government [.] is day by day becoming more isolated", the foreign ministry said in a statement.
Iran apparently requested that the ICJ force the United States to rescind measures banning the sale and transport of certain "humanitarian goods" to the region, including medical supplies, emergency food, and mechanical and airplane parts.
The treaty, which was signed in Tehran, established consular and economic relations between the USA and Iran.
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The 2015 nuclear deal saw Iran agree to limit its nuclear programme and let in worldwide inspectors in return for an end to years of sanctions by the West.
In response to a United Nations court order that the U.S. lift sanctions on Iran, the Trump administration said on Wednesday (Thursday NZ Time) it was terminating a decades-old treaty affirming friendly relations between the two countries.
Iranian Foreign Ministry spokesman Bahram Qasemi said on Monday that the EU's proposed mechanism to pay Tehran the revenues from oil sales was not "an oil for food program".
Any country doing business with Iran, he said, would not be allowed to trade with the United States.
"Iran is the source of the current threat to the Americans in Iraq".
Iran's President Hassan Rouhani speaks at a news conference on the sidelines of the 73rd session of the United Nations General Assembly at U.N. headquarters in NY, U.S., September 26, 2018.
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Iran filed a lawsuit at The Hague-based United Nations court in July, arguing that USA sanctions contravene a decades-old bilateral treaty and are destroying the national economy and currency. "Iran's case is baseless, and I applaud Secretary Pompeo's decision to withdraw the United States from such an outdated agreement".
The U.S. had argued that the sanctions can not be challenged at the ICJ because it is a matter of national security.
The U.S. ambassador to the Netherlands, Peter Hoekstra, said it was "a meritless case over which the court has no jurisdiction".
In his speech before the United Nations General Assembly last week, President Donald Trump called on all countries to isolate Iran and stop the flow of money to the regime of President Hassan Rouhani.
The ruling is likely to rile Trump, who reimposed the sanctions in May after pulling out of Iran´s worldwide nuclear deal to the dismay of his allies.
"The United States has been actively engaged on these issues without regard to any proceeding before the ICJ", he said. He recently heavily criticized the separate International Criminal Court in The Hague over a probe into alleged U.S. abuses in Afghanistan.
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