
The European Union (EU) has announced the creation of a payment mechanism that will allow trade for continued trade with Iran, despite disapproval from the United States (US). President Donald Trump withdrew the US from the Joint Comprehensive Plan of Action (JCPOA) in May of 2018 which allowed the US to apply economic pressure on Iran. In contrast to President Trump's move, the EU is establishing the Instrument In Support Of Trade Exchanges (INSTEX), which will allow trade between the EU and Iran without relying on direct financial transactions.