Having pulled out of the Iran nuclear deal, US President Donald Trump put major companies’ backs against the wall, leaving them with a difficult choice of whether to do business with Iran or the United States.
The US sanctions against Iran that will come into effect on November are expected to be more damaging and have unpredictable consequences. "Anyone doing business with Iran will not be doing business with the United States,” Trump said in his tweet, primarily addressing the message to EU companies.
The threat follows the launch of the EU’s “blocking statute”, which has been in force since August 7 and is aimed at countering the effects of the US sanctions on European companies.
The restrictive measures will ban Iranian counterparts from trading aluminum, steel and coal. The sanctions will also affect firms that make software for industrial companies. Analysts believe that by cutting off Tehran from the currency and commodity markets Washington wants to reduce Iran's military influence in the Middle East.
The second round of sanctions that come into effect before November 4 will hit Iran's energy sector. Transactions related to Iranian oil will be banned.