France’s Total warns of Iran exit as EU struggles to save economic ties

French energy giant Total joined other European companies in signalling on Wednesday they could exit Iran, casting doubt on whether European leaders meeting to try to salvage the Iran nuclear deal can safeguard trade with Tehran.

President Donald Trump’s withdrawal of the United States from the nuclear accordand his order that sanctions be reimposed on Tehran have left European allies scrambling to keep the deal alive and protect their Iranian trade.

EU leaders gathered in the Bulgarian capital of Sofia on Wednesday for their first meeting on the matter since Mr Trump quit the accord earlier this month. But US clout in international trade and finance limits their scope for action.

Total said it might quit a multibillion-dollar gas project if it could not secure a waiver from US sanctions. Tehran had repeatedly hailed the project as a symbol of the nuclear accord’s success.

Such a move would be a blow to President Hassan Rouhani, who had hoped the prestigious project could make other international businesses regain confidence in Iran and bring in investment.

Read the article in the Australian Financial Review.