US SECRETARY of State Mike Pompeo has announced that the Trump administration is cancelling a 1955 treaty with Iran that had established economic relations and consular rights between the two nations.

The move follows a ruling by the United Nations’ highest court ordering the United States to lift sanctions on Iran that affect imports of humanitarian goods.

Iran alleges that the sanctions imposed by the Trump administration after its withdrawal from a 2015 nuclear deal with Iran violated the so-called Treaty of Amity.

Mr Pompeo told reporters on Wednesday that the termination of the treaty was decades overdue.

He said that Iran was abusing the International Court of Justice for political and propaganda purposes.

He said Iran’s claims under the treaty were “absurd.”

The United States has called the international ruling against its Iran sanctions a defeat for Tehran as the result was the termination of the treaty.

The International Criminal Court ordered the United States to lift sanctions on medicine, food and civilian aeroplane spare parts, just as President Donald Trump tries to squeeze Iran’s economy.

But Mr Pompeo noted that the UN court did not rule more broadly against US sanctions and he insisted that the United States already exempted humanitarian goods from the sanctions.

“The court’s ruling today was a defeat for Iran. It rightly rejected all of Iran’s baseless requests,” Mr Pompeo told reporters.

Accusing Iran of “abusing the ICJ for political and propaganda purposes,” Mr Pompeo announced that the United States was ending a friendship treaty signed when Iran was ruled by the pro-US shah.

“This is a decision, frankly, that is 39 years overdue,” Mr Pompeo said, referring to the time since the 1979 Islamic revolution transformed Iran from one of the closest allies to a determined foe.

“Given Iran’s history of terrorism, ballistic missile activity and other malign behaviours, Iran’s claims under the treaty are absurd,” he said.

The Treaty of Amity with Iran, signed in 1955 and ratified by the US Senate a year later, lays out practicalities for unfettered economic relations and consular rights between the two countries.

The US withdrawal will have limited direct effect, with the two countries not even having diplomatic relations.

But Iran has repeatedly cited the treaty to press claims from the United States, including when the US Navy shot down an Iran Air civilian plane in 1988, killing 290 people.