trending Market Intelligence /marketintelligence/en/news-insights/trending/k2k7EVjgU4xKpGVMyPFDtw2 content esgSubNav
Log in to other products

 /


Looking for more?

Contact Us
In This List

Report: US threatens sanctions against European payments channel for Iran trade

Video

Climate Credit Analytics: Linking climate scenarios to financial impacts

Blog

Banking Essentials Newsletter: May Edition

Podcast

Street Talk Episode 76: Record pace of fintech M&A, funding in Q1'21 has legs

Street Talk – Episode 76: Record pace of fintech M&A, funding in Q1'21 has legs


Report: US threatens sanctions against European payments channel for Iran trade

The U.S. Treasury Department warned that the European payments system created to trade with Iran without violating U.S. sanctions could face "severe consequences," Bloomberg News reported.

In January, France, Germany and the U.K. launched the Instrument for Supporting Trade Exchanges, or INSTEX SAS, a special vehicle aimed at facilitating Europe-Iran trade and circumventing U.S. sanctions that were restored after the Trump administration withdrew from the Iran nuclear deal in 2018.

In a May 7 letter, a U.S. Treasury official reportedly urged INSTEX President Per Fischer to "carefully consider" the vehicle's exposure to potential sanctions.

"Engaging in activities that run afoul of U.S. sanctions can result in severe consequences, including a loss of access to the U.S. financial system," Sigal Mandelker, the Treasury's undersecretary for terrorism and financial intelligence, wrote in the letter.

INSTEX's creators recently rejected Iran's demand for protection from reinstated U.S. sanctions. However, they reaffirmed their plan to pursue legitimate trade with the Middle Eastern nation.