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One of the world’s biggest cargo shippers, CMA CGM, announced on Saturday it was pulling out of Iran over fears of U.S. sanctions. The situation has caused panic in Iran’s economy with President Hassan Rouhani asking the European countries to help.
The announcement by France’s CMA CGM that it was quitting Iran deals a blow to Tehran’s efforts to persuade European countries to offer economic benefits to offset the new U.S. sanctions.
Iran says it needs more help from Europe to keep alive an agreement with world powers to curb its nuclear programme, Reuters reports.
After U.S. President Donald Trump pulled out of the agreement in May, he announced new sanctions on Tehran and ordered all countries to stop buying Iranian oil by November and foreign firms to stop doing business there or face U.S. blacklists.
European powers which still support the nuclear deal say they will do more to encourage their businesses to remain engaged with Iran. But the prospect of being banned in the United States appears to be enough to persuade European companies to keep out.
CMA CGM, which according to the United Nations operates the world’s third largest container shipping fleet with more than 11 percent of global capacity, said it would halt service for Iran as it did not want to fall foul of the rules given its large presence in the United States.
“Due to the Trump administration, we have decided to end our service for Iran,” CMA CGM chief Rodolphe Saade said during an economic conference in the southern French city of Aix-en-Provence.
“Our Chinese competitors are hesitating a little, so maybe they have a different relationship with Trump, but we apply the rules,” Saade said.