Germany Warns US Iran Sanctions Could Cause 'Chaos'

German Foreign Minister Heiko Maas warned Wednesday that US President Donald Trump's decision to reimpose sanctions on Iran could further destabilise the Middle East and boost radical forces in the region.

Trump brought back the punishing sanctions after unilaterally pulling out of a landmark 2015 deal between Tehran and Western powers to halt Iran's nuclear ambitions.

"We still think that it is a mistake to give up on the nuclear accord with
Iran," Maas said in an interview with the daily Passauer Neue Presse.

"We are fighting for the deal because it also serves our purpose by bringing about security and transparency in the region."

Noting Iran's geographic proximity to Europe, Maas warned that "anyone who's hoping for regime change must not forget that whatever follows could bring us much bigger problems."

"Isolating Iran could boost radical and fundamentalist forces," he said, adding that "chaos in Iran, as we have experienced in Iraq or Libya, would further destabilize an already troubled region."

In a desperate bid to save the nuclear accord, European governments have pledged to do what they can to keep business links with Tehran.

Despite the political will to hold firm, many large European firms such as German automaker Daimler are leaving Iran for fear of US penalties.

The US ambassador to Germany, Richard Grenell, welcomed the news.

"We are pleased to see German businesses stopping their trade with Iran, complying with U.S. sanctions, and helping pressure the Iranian regime back to the table," he tweeted.  

"We stand together to stop Iran's malign activities."

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Daimler Says Halting Iran Activities Over US Sanctions

German automaker Daimler on Tuesday said it was halting its business activities in Iran after the United States re-imposed sanctions on Tehran.

"We have suspended our already limited activities in Iran in accordance with the applicable sanctions," a spokeswoman said in a statement sent to AFP, adding that Daimler was closely monitoring political developments.

The move brings a sudden end to Daimler's expansion plans in Iran, where it was teaming up with two local firms to assemble Mercedes-Benz trucks.

It comes as a first round of renewed US sanctions on Iran came into effect after President Donald Trump unilaterally pulled out of the Iran nuclear deal.

The first sanctions targets access to US banknotes and key industries such as cars and carpets.

A second tranche coming into effect on November 5 is expected to be even more damaging, covering Iran's vital oil sector.

The European Union, which still adheres to the landmark 2015 nuclear pact, has promised to take steps to protect EU firms' dealings with Iran, but the uncertainty has already prompted many businesses to pull out of the country.

French carmaker Renault, which does not sell cars in the US, has said it will remain in Iran despite the sanctions.

But French oil group Total and carmaker PSA have already indicated they are likely to withdraw from Iran.

Trump ramped up the pressure again Tuesday, hailing the "most biting sanctions ever imposed".

"Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less," he wrote.

Daimler had signed a letter of intent in 2016 to manufacture and sell Mercedes trucks in Iran in a joint venture with Iran Khodro Diesel (IKD) and the Mammut Group, in its first big step to return to the country after years of sanctions over its nuclear programme.

In its statement, Daimler stressed that it had not yet started making or selling any trucks in Iran, nor was it selling any passenger cars there.

"We continue to monitor closely the political developments, particularly with regard to the future of the nuclear agreement," Daimler added.

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