German auto giant Volkswagen is set to curtail the majority of its business in Iran under pressure from the administration of US President Donald Trump, according to US Ambassador to Germany Richard Grenell.
This move comes following discussions between the German automaker and the US, as the Trump administration works towards gaining support for its new set of sanctions against Iran, which are set to take effect in early November.
Previously, after the nuclear deal had been signed under the administration of former US President Barak Obama, Volkswagen had announced in July 2017 that it would re-enter the Iranian market after 17 years of absence. However, once Trump bowed out of the deal in May, the ability to conduct business with Iran became more difficult.
While Volkswagen will no longer conduct business in Iran, Grenell added that the company would still be able to conduct some humanitarian-related business.
Other companies have also stated they would decrease or abandon doing business in the cleric-run country, including Total, Adidas, and Daimler.
The sanctions are hitting Iran's economy hard, as its oil exports have seen a 35-percent decrease since April, its currency has fallen drastically to the US dollar, and its inflation rate has skyrocketed.
Iranians are becoming increasingly discontent with the clerical regime as poverty increases, and demonstrations have become more prominent since last December.