Will scrap nuke deal if needed

• Europe cannot save nuclear deal, help  economy: Khamenei
• Tehran 'planted spy in  Israeli cabinet': Iran's  intelligence minister

Iran's supreme leader warned yesterday the country could abandon its nuclear deal with world powers if it no longer served its interests, even as economic and political pressure mounted on the government.

"Naturally, if we reach the conclusion that (the nuclear deal) is no longer maintaining our national interests, we will put it aside," Ayatollah Ali Khamenei said in a meeting with the cabinet, according to his website.

He said Iran must not "pin its hopes" on Europe, despite European efforts to salvage the nuclear deal following the withdrawal of the United States.

The government of President Hassan Rouhani has been battered by the return of US sanctions, which has triggered a rapid departure of foreign firms and ended his hopes of attracting large-scale investment.

His political enemies are circling, with parliament announcing that two more of his ministers could be impeached in the coming days.

The labour and economy ministers have already been sacked by parliament this month and motions have been accepted to vote on impeaching his industries and education ministers in the coming days.

Khamenei insisted the political tumult was a sign of the strength of Iran's democracy.

He praised the tough questioning Rouhani received in parliament on Tuesday as "a glorious show of the power of the Islamic republic and the self-confidence of officials."

Tuesday's grilling in parliament was the first for Rouhani in five years as president, and lawmakers slammed his handling of five economic issues.

Meanwhile, Iran's intelligence minister said "dozens of spies" had been arrested as part of a crackdown on espionage and dual nationals and alluded to an agent Iran had placed in the Israeli government, Iranian media reported yesterday.

Intelligence Minister Mahmoud Alavi did not provide details of the "dozens of spies" in the interview televised late on Tuesday.

He said Iran had planted the agent "in the cabinet of a country that has a very strong intelligence service".

The conservative Tasnim news agency said this was a reference to Gonen Segev, a former Israeli energy and infrastructure minister who was charged with spying by a Jerusalem court last month.