Causes for concern include insufficient clarity on ship insurance, a lack of dollar clearing, the absence of an established mechanism for non-dollar sales and banks’ reluctance to give letters of credit to facilitate trade. Many European firms also fear violating other sanctions imposed on Iran by the US that have yet to be lifted.

Potential ‘grey zone’  

Marco Dunand, chief executive of Swiss trading house Mercuria, commented: ‘As a European citizen, I can probably trade it again provided I don't use US dollars. But then if you use a euro-dollar conversion, does it become a grey (uncertain) zone?’ He added that additional explanatory work needs to be done by European governments on how ship insurance and banking would now work before imports to Europe resume. Sources: Reuters