World Bulletin / News Desk
The lawsuit said U.S. President Donald Trump's decision allegedly violated the 1955 Treaty of Amity, Economic Relations, and Consular Rights between Tehran and Washington.
The oral hearings will last for four days and the U.S. will present its case on Tuesday.
U.S. Secretary of State Mike Pompeo on Monday called the suit "an attempt to interfere with the sovereign rights of the United States to take lawful actions, including re-imposition of sanctions, which are necessary to protect our national security."
"The proceedings instituted by Iran are a misuse of the Court," Pompeo said in a statement.
Trump elicited Iran's furor in May when he unilaterally pulled the U.S. out of the 2015 nuclear accord the five permanent members of the UN Security Council and Germany struck with Iran.
The deal saw Tehran accept unprecedented curbs and inspections on its nuclear program in exchange for billions of dollars in sanctions relief.
The first round of sanctions, largely targeting Iran's banking sector, took effect Aug. 6. A second, more robust wave of oil-related sanctions is set to snap back Nov. 4.
*Michael Hernandez contributed to this report from Washington