THOUSANDS of Iranians have staged a rally to mark the anniversary of the 1979 US embassy takeover as Washington restored all sanctions lifted under the 2015 nuclear deal.

The crowd chanted “Down with the US”, and “Death to Israel” during yesterday’s rally in Tehran, and state TV said similar demonstrations took place around the country.

On Friday, Donald Trump’s US administration announced the restoration of sanctions on Iran’s shipping, financial and energy sectors, the second batch to be restored after the US withdrew from the 2015 nuclear agreement in May.

Shortly after the 1979 Islamic Revolution, Iranian students stormed the embassy taking 52 Americans hostage for 444 days – the US cut off diplomatic relations in response.

Iran’s government celebrates the takeover every year as a decisive blow against the US, which had supported the autocratic rule of Shah Mohammad Reza Pahlavi.

Anger and distrust over the US is surging again following Trump’s decision to withdraw from the landmark deal with world powers, which was negotiated under the Obama administration.

The US said it does not aim to topple the government with the sanctions, but to persuade Iran to change policies like its support for regional militant groups and development of long-range ballistic missiles.