DUBAI－Iran's Supreme Leader Ayatollah Ali Khamenei said on Monday the country's economy should not be tied to efforts to remove US sanctions.

Iran and major powers have engaged in talks for the past 11 months in Vienna to revive a 2015 nuclear deal, which curbed Teheran's nuclear program in exchange for sanctions relief.

"We should not tie the economy to sanctions. It is possible to make economic advances despite US sanctions. It is possible to expand foreign trade, as we did, enter regional agreements and have achievements in oil and other areas," Khamenei said in a televised speech.

Painstaking talks in Vienna have dragged on for the past year. Iran has urged sanctions relief, but sought to resist tough Western demands.

Negotiations nearly reached completion earlier this month before Moscow demanded that its trade with Iran be exempted from Western sanctions over Ukraine. Negotiators have yet to reconvene in the Austrian capital, and it is unclear exactly what hurdles lie ahead.

"I never say to not go after sanctions relief, but I am asking you to govern the country in a way in which sanctions do not hurt us," said Khamenei addressing the country's officials, adding that the economy is the key issue for Iran.

Also on Monday, US State Department spokesman Ned Price said a deal to restore the pact is not imminent, but Washington is prepared to take "difficult decisions" to make it happen, without elaborating.

He said the main issues that remain include Iran committing to verifiable limits on its nuclear activities, in return for an easing of punishing sanctions placed on the country.

"I want to be clear that an agreement is neither imminent nor is it certain," Price said.

Meanwhile, Israeli Prime Minister Naftali Bennett held a three-way summit on Monday in Egypt with Egyptian President Abdel-Fattah al-Sisi and Emirati leaders against the background of Iran nuclear talks, Israeli media said.

Several Israeli media outlets reported that the leaders were discussing reports that Iran and Western powers are close to a deal to revive the 2015 nuclear accord.

Agencies via Xinhua