US sanctions on Iran: what they mean for European businesses

The United States announced a new wave of secondary sanctions against Iran on Monday, expanding its campaign to pressure Tehran and warning global companies they risk losing access to the dollar. Treasury Secretary Scott Bessent described the move as an "economic attack" on Iran's financial ties. Nearly 60 companies, individuals, and ships were added to the US blacklist, including Chinese nationals, while sanctions were extended to shipping, aviation, gold, technology, and digital assets. Bessent warned that any entity laundering money for Iran would be excluded from the dollar system, though he declined to set a compliance deadline. European direct trade exposure to Iran remains minimal, with EU-Iran goods trade at just 3.72 billion euros in 2025, down from a peak of 27 billion in 2011. However, European banks and firms face legal dilemmas, as EU blocking statutes prohibit compliance with US sanctions, yet most have prioritized dollar access since 2018.