The United States has re-imposed sanctions on Iran - which forbids any US company or subsidiary from trading with the country. It also threatens to penalise international companies if they do business with the oil-rich nation.

Iran is already starting to feel the economic squeeze - and has warned it may follow America's lead and withdraw from the nuclear peace process. In an effort to salvage the agreement - and secure lucrative business dealings - the European Union has come up with a plan to circumvent the stand-off.

The EU says it will create a new financial mechanism to allow countries to continue trading with Iran - without breaching US sanctions. It's referred to as a "special purpose vehicle" and could act as a middle man or buffer between companies and Tehran.

Guests:

Bozkurt Aran

Former Turkish Ambassador to Iran

Borzou Daragahi

Senior Fellow at the Atlantic Council