Economics
U.S. Warns Europe That Its Iran Workaround Could Face Sanctions
- Treasury’s Mandelker warned Instex chief in May 7 letter
- Warning is latest escalation in U.S. bid to isolate Iran
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The Trump administration escalated its battle with European allies over the fate of the Iran nuclear accord, threatening penalties against the financial body created by Germany, the U.K. and France to shield trade with the Islamic Republic from U.S. sanctions.
Sigal Mandelker, the Treasury Department’s undersecretary for terrorism and financial intelligence, signaled in a May 7 letter obtained by Bloomberg that Instex, the European vehicle to sustain trade with Tehran, and anyone associated with it could be barred from the U.S. financial system if it goes into effect.